Bogleys Standing Stone was removed from its site in a field north of Dysart, by Kirkcaldy, in 2004 for coal works and has never been returned to its rightful resting place.
However, the new Kingdom Park housing project, work on which began last year, will reinstate the stone in the field as part of phase three of developer Murray Estates' five-phase development plan to build 1,100 homes.
In a planning document submitted to Fife Council, the developer has outlined how the stone will be "sensitively re-erected in a setting that will enable
easy public access and include interpretation of the history of the stone".
Fife Council has approved phases three, four and five as of December 1 meaning the project is now fully approved for construction, having approved detailed specifications for phases one and two last year.
Documents included with the application for planning permission detail how each phase of the development - envisaged as a complete new village, Kingslaw - will cater to different types of residents.
Phase three, known as Burnside, will mix residential flats with a new park and retail and leisure activities in a retail park-type setting, possibly including a supermarket and petrol station. A new four-arm roundabout will be created where the A921 meets Mitchelston Drive to cope with the expected additional demand.
Phase four, Lomond Park, will see 280 homes built alongside playing fields and a primary school, while the fifth and final phase , The Avenue, will add a further 180 homes, small retail units, a community hall and more green space to the 135-acre site.
Murray Estates has pledged that the village will be sociable and environmentally friendly, with measures taken to encourage active travel over private car use and meeting spaces dotted throughout.
Fife Council lead professional in development management William Shand said the detailed proposals were in line with the previously agreed masterplan and Fife's existing housing policies.
He wrote: "It is considered that the Development Briefs submitted for Phases 3, 4 and 5 are consistent with the provisions of the Masterplan and the development plan and that approval can be granted subject to condition."