Aberdeen City Council has announced Dandara as the preferred bidder to redevelop the Middlefield Triangle.
The Triangle will be created with the construction of a new connecting road between North Anderson Drive and Auchmill Road to ease traffic flow on the Haudagain roundabout.
Housing enclosed by the roads will be demolished after being found to be of "poor quality".
Committee vice-convener Councillor Gordon Graham said: "I am delighted that a preferred bidder has been selected for the Middlefield Triangle and that we can look forward to seeing detailed regeneration plans.
"During the pre-application process the Council will work with Dandara to ensure that the community's views are taken into consideration."
Dandara director Neil Young added: "We are very pleased to have been selected as preferred bidder for this strategically important site, and look forward to helping to breathe new life into the area.
"A mixed-use development is envisaged for the 'Middlefield triangle', and proposals for the land will be unveiled in the coming months."
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