The new £350m Ebury Bridge Estate will create around 758 high-quality, energy efficient homes, including at least 386 affordable homes.
Bouygues is due to start work later this year on the £97m first phase.
The company is already working in Westminster to deliver new homes, a sports hall and a community space as part of the council’s Church Street regeneration programme.
Cllr Melvyn Caplan, Deputy Leader and Cabinet Member for Finance, Property and Regeneration for Westminster City Council said: “In partnership with the residents of Ebury Bridge, we’ve taken forward the renewal of the estate and the signing of this contract is a significant milestone in this journey.
“The much needed new homes built as part of the scheme will contribute to our target of 1,850 homes over the next three years.
“We want the Ebury Bridge renewal scheme to create a new high standard in estate regeneration and we’re looking forward to working with Bouygues UK in making this vision a reality.”