Council chiefs have appointed the Barratt Keepmoat Yuill (BKY) consortium as its private sector partner to revitalise Scotswood.
The move follows years of delays and disappointments for plans to transform the 60 hectare site.
BKY and the council will form a public private partnership for up to 15 years to provide new homes, parks, shops and associated facilities.
Persimmon Homes has been chosen as reserve partner for the scheme.
The appointment is subject to the council and BKY reaching final agreement on detailed contract and financial issues.
Initial infrastructure work began on site in April, to be followed by the award of the main works contract in June. The initial work will take 18 months.