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Land use changes associated with habitat loss, fragmentation, and degradation exert profoundly detrimental impacts on biodiversity conservation. Urban development is one of the prevailing anthropogenic disturbances to wildlife habitat, because these developments are often considered permanent and irreversible. As a result, the potential benefits of built-up land relocation for biodiversity conservation have remained largely unexplored in environmental management practices. Here, we analyze recent built-up land relocation in Shanghai and explore how such restoration programs can affect future land change trajectories with regards to biodiversity conservation. Results show that 187.78 km2 built-up land in Shanghai was restored to natural habitat between 2017 and 2020. Further simulation analysis highlights that relocating built-up land can substantially promote conserve biodiversity. In particular, there would be less habitat loss, better natural habitat quality and more species habitat-suitable range under the scenarios with built-up land relocation. Species extinction assessment suggest that amphibians, mammals, and reptiles will all have an increasingly high extinction risk without built-up land relocation. However, there will even be a marginal decrease in extinction risk over time for mammals and reptiles if the relocation of built-up land is permitted, but still a moderate increase in extinction risk for amphibians. This study highlights the importance of incorporating rigorous conservation planning prior to development activities, thereby underpinning a sustainable approach to environmental management. • Urban development is overwhelmingly portrayed by the one-way process of expansion. • We elaborate the policy initiative of built-up land displacement in Shanghai. • Built-up land displacement is represented in our land use simulation model. • Relocating built-up land complements the global efforts on biological conservation. • We envision a desirable future for biological conservation and urban development. [ABSTRACT FROM AUTHOR]