The Evolution Gateshead consortium of Home Group and Galliford Try and the Compendium Group containing Riverside Housing and Lovell Partnerships have been chosen to tender for work across 19 different sites in the region.
The decision means rival bids from Barratt Keepmoat and McInerney Homes and First Base have fallen by the wayside.
Construction work will be carried out over a period of 15-20 years by a formal partnership called a Joint Venture Vehicle which will involve Gateshead Council and the winning developer.
Both companies will now be invited to submit final tenders and Cabinet members will make the final selection of the approved bidder in February 2011.
Gateshead Council has already identified approximately 70 hectares of land suitable for housing development.
The majority of the sites are either already in Council ownership or are in the process of being acquired, and includes sites at Birtley Northside, the former Freight Depot on the Felling by-pass and demolition sites in Bensham and Saltwell.
The anticipated 2,500 new homes will be built to a minimum Code for Sustainable Homes Level 4, which will ensure that they are among the best insulated or most energy-efficient homes in the region. Some 25% will be affordable social housing.
The gross development value of the proposal is around £1bn.