Muse will now deliver a masterplan for the South Shields 365 scheme.
The scheme will create a new cinema, library, 175,000 square foot of retail and leisure facilities including a food store, as well as a hotel.
Work is due to commence summer 2014 and is expected to take six years to complete.
John Morgan, Chief Executive, Morgan Sindall Group plc said: “We have a strong track record in delivering complex, mixed-use regeneration schemes and we are delighted to be working alongside South Tyneside Council to revitalise South Shields town centre.
“This important project will see the creation of a vibrant retail and leisure quarter as well as the development of new homes and will unlock new opportunities for residents, businesses and visitors to the area.”
Councillor Iain Malcolm, Leader of South Tyneside Council, said: “Muse’s track record of delivering successful town centre regeneration is second to none, and the company will bring further expertise, innovation and financial strength to our plans.
“South Shields 365 is an ambitious vision for a radical redevelopment and this appointment is a major step towards making the vision a reality.”