Residents have welcomed the proposals, submitted by Ideal Care Homes, to build a 62-bed care home on the site of the Staffordshire Knot, in Chesterton.
They say the pub is in a derelict state and has attracted anti-social behaviour.
This has included residents finding needles, glass being broken and the removal of drain lids at the Loomer Road site.
Now plans have been submitted to build a three-storey care home on the 1.4 acre site.
And if the plans are passed by Newcastle Borough Council it could create 42 jobs.
These would include 24 care workers, six laundry staff, four chefs, two reception positions and management positions.
Bev Brookes, aged 43, said she had struggled to sell her Hadrian Way home because of the eyesore created by the former pub.
Hadrian Way is located behind the site of the boarded-up building.
She said: "We put our home on the market for years and we think the pub had a negative impact on the street because it's such an eyesore.
"There's been broken glass, syringes, kids playing on the roof and it's just dangerous.
"This will bring jobs to the area and it'll be really nice because it's going to be landscaped. I just hope the plans are going to go through.
"We're really pleased with the plans."
Joanne Warrington, also of Hadrian Way, is hoping to find work at the care home.
The 39-year-old worked as a ward clerk at Bradwell Hospital before leaving to raise her children.
She added: "There are job prospects and the site will be well kept, everybody is happy about it.
"It's been an absolute eyesore and I've had to tell so many kids off for throwing tiles and vandalising the building. It's now become something for them to vandalise."
The pub, owned by Admiral Taverns, ceased trading in 2008.
The company had planning permission to build 19 homes on the site approved last September.
Karin Morris, of Hadrian Way, hopes a care home is built on the site rather than housing.
The 56-year-old said: "I'd rather it be something like an old people's home than a private company making money out of it.
"It's going to be worthwhile and it's just a relief it's not going to be the original plans. It'll put something back into the community."
The planning application states the firm has "considerable" experience in developing care homes.
It reads: "The Staffordshire Knot has been identified as a suitable site for a new care home, being a brownfield site in an attractive location and being located in a residential area, which has good access to public transport and services."
Newcastle Borough Council is expected to make a decision on the application by July.
Source http://www.thisisstaffordshire.co.uk/
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