The Parkside Fire Station development in the centre of the city will also see 99 apartments built over the station.
Work will start in summer after the current fire station adjacent to Parker’s Piece has been demolished.
When complete in 2013, the new fire station will save an estimated £4m in running costs over the next five years.
Willmott Dixon was one of six firms bidding for the contract and managing director Tim Carpenter said: “We are delighted to be chosen by Grosvenor to work with them on creating such an important new facility for the fire service, alongside providing quality housing in a great location.
“The fact that it’s our first ever contract with Grosvenor makes it even more special.”
He added: “We have a long and proud track record in Cambridge, including working with the University of Cambridge on several projects such as the Hauser Forum, Physics for Medicine and Plant Growth Facility.”