More than 170 homes at RAF West Raynham are to be sold off after standing vacant for a decade.
The Ministry of Defence closed down operations at the base in 1994 but has so far refused to release the housing.
The government has now announced it no longer needs the site and will meet with North Norfolk District Council to decide how best to sell the homes.
MP for North Norfolk, Norman Lamb, said many of the properties will need substantial investment.
The Liberal Democrat MP, who has campaigned for the release of RAF West Raynham base for civilian use, added: "This is very good news for local people and North Norfolk.
"There is now a real opportunity to bring the more than 170 houses back into use for the benefit of the community.
"I am pressing for a meeting between the District Council and the Defence Estates to take place as soon as possible to discuss the future for West Raynham.
"There is still a massive amount of work to do and the problem is that the properties have decayed so much that the investment required to get them back into use will be very substantial."