The plans for the development include the construction of 715 affordable and private homes in Pennywell, which is located in the Muirhouse area.
The homes, which are to be built within nine years of the contract award, includes 356 Council homes which are to be constructed within six years. This is in addition to the 34 currently under construction as well as the 200 properties nearing completion at Muirhouse Avenue.
Councillor Day said it is the largest housing project in the local authority's 21st Century Homes programme and one of the largest housing-led regeneration projects in Scotland.
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The plans still have to go before the committee but, if approved, the scale of the development will see huge and much-needed investment in that part of the city.
However, Mr Day said the project will bring more than just new homes to the capital.
He explained: "The properties themselves will be well-designed and energy efficient, with 10% of the Council homes accessible for wheelchair users.
"It won't just be the residents who benefit. There will be 36 apprenticeships and 24 new entrant construction jobs, plus extra work placements.
"There will be high quality public spaces, including a park, and private and shared gardens.
"The whole development has the potential to create opportunities for community enterprise and a 'Co-operative Edinburgh' that will stretch well beyond the duration of the construction project."
He added: "A key priority for this Council is to provide affordable homes for more of Edinburgh's residents and this is something we are determined to achieve along with our partners in the private sector, Housing Associations and the Scottish Government."
For every Council property that becomes available to let in the city, there are 150 bids. It has previously been suggested that the authority needs to deliver 16,000 affordable homes in the next 10 years.
(JP/MH)
