Ikea Properties Investments submitted an outline planning application last October to Exeter City Council to build a retail store on a 15.1-acre site off Newcourt Way and the A379 with 301,389 sq ft of upper floor space and 1,004 parking spaces.
At the same time, it requested outline planning consent to construct between 180 and 220 houses on a neighbouring 16.6-acre site.
Planning officers have now recommended both proposals should be approved subject to conditions and a Section 106 agreement.
Exeter City Council's planning committee are expected to determine the outcome of both applications at its meeting on Monday, 13 January 2014.
At present, Exeter's nearest Ikea store is located in Bristol.