Stockport Council has appointed Your Housing Group and Eric Wright Group to build 114 new homes in the town centre.
The partnership will lead the £14m project, building a mix of family homes and apartments, available for sale, private rent or shared ownership.
The homes will form part of the Covent Garden development which centres around the Hopes Carr and Middle Highgate areas.
Work on the development is due to begin in September 2014 and is anticipated to complete in 2017.
Stephen Haigh, executive director of growth at Your Housing Group, said: "The provision of new homes within the town centre is a unique opportunity."
Cllr Iain Roberts, executive member for economic development and regeneration at Stockport Council, said: "The Covent Garden development is pivotal in our plans to get more people living in the town centre. More homes means more footfall, more support for local businesses and more investment, supporting the regeneration of the town centre as a whole."
Andrew Dewhurst, development director at Eric Wright Group, added: "We look forward to working with Stockport MBC and playing our part in the continuing regeneration of this part of Stockport town centre."