The homes, which would be built across five sites in the north and east of the city, would be the first to be built under the Scottish Government-backed National Housing Trust scheme.
Under the scheme councils can borrow cash with the Scottish Government underwriting the loans to remove the financial risk.
The developers have all entered into a framework agreement with the council and Scottish Futures Trust and their proposals will be evaluated further before contracts are signed.
Developers and sites
Places for People – Lochend North and Madelvic 8
Miller Homes – Telford North
Hillcrest/Teague Developments – Salamander Street/Salamander Place
New City Vision (Laing O’Rourke, Bishop Loch) – Niddrie Mains Road
The innovative NHT project is being led by the Scottish Government and the Scottish Futures Trust in order to provide a major expansion in the provision of affordable rented homes across the country.
Councillor Paul Edie, housing leader of Edinburgh Council, said: “Securing affordable homes through the National Housing Trust would be a significant achievement given the current financial and housing climate.
“This has been a very thorough process and I am pleased we are getting closer to the finishing line.
He added: “NHT is an innovative way of tackling the shortage of affordable home,s not just in Edinburgh but around the country.
“Everyone knows more needs to be done and it’s good that the public and private sector are working in partnership on this project.”
Minister for Housing and Transport, Keith Brown said: “The National Housing Trust model, developed by the Scottish Government and Scottish Futures Trust, has won plaudits across the UK.
“Procurement of Phase 1 is nearing completion and we will soon see several hundred affordable homes being developed through this ground-breaking initiative, safeguarding hundreds of jobs.