In this work, a concept of modern residential development, including public infrastructure, integrated seamlessly into the historic centre of Irkutsk was elaborated. The proposed location of the quarter lies within the boundaries of Rabochaya Street, the territory of the Machine-Building Plant, the Ushakovka river embankment and Frank Kamenetsky and Oktyabrskaya Revolution streets. The contemporary town planning structures within the historical context were analysed using the examples of various cities. The components of urban identity and trends, which affect its formation, were studied. The characteristics of the form making for the objects having different purposes within the urban structure of Irkutsk were defined. Design solutions for constructing a modern residential area together with public buildings in the historic centre of Irkutsk were provided. When developing the project, studying urban identity and its implementation in the design solutions was emphasised. The proposed concept aims to preserve urban identity and stresses the characteristics of the historic architecture of the city in current urban development.