Work will see construction of 70 new homes alongside an improved ball court, open spaces, estates paths, play areas and community facilities.
The new energy-efficient housing – 36 apartments and 34 houses – will be built on nine sites at the estate, including former garages and car parking.
The existing Romford House will also be replaced with a new purpose-built development for residents aged over 55.
The construction programme will last three years to complete the scheme designed by Pollard Thomas Edwards architects.
Lovell regional director Michael O’Farrell said: “We’re delighted to have been appointed by Islington Council to this major scheme which is also our first contract awarded through Islington’s New Build Contractor Framework.
“We look forward to using the company’s expertise in delivering high-quality mixed tenure estate regeneration programmes to bring these quality homes and enhanced public spaces and community facilities to Dover Court.”