Bett Homes have warned that jobs may be lost if their planning application for 42 homes in Brackens is rejected.
They want to extend the existing development at Baldragon Farm, which lies to the east of Clatto Country Park.
Around 130 houses were built in the first phase and a 39-home addition is nearing completion.
The proposal covers a site to the west of the most recent construction at St Martin’s Crescent.
A submission to the city council says: “The existing Bett Homes staff live and work in Dundee and we seek an extension to the existing consents to retain their employment within the city.
“At this point in time Bett Homes only has a planning application live at Linlathen and this may well be refused on prematurity grounds before the end of 2013.
“Baldragon therefore represents the only available outlet within the city to retain staff.”
The company say that development of the site is restricted in part by policies promoting housebuilding at the Western Gateway.
“It is proposed to build three and four-bedroom detached units which will be priced at considerably less than that hoped to achieve at Western Gateway. The mix of types is smaller at Baldragon and will not compete on mix and prices.”
Bett argue that it would be “perverse and draconian” to bar the continued development of the site.