Eastland Homes has selected the small architectural practice to modernise Platt and Worsley Courts in Rusholme and Bickerdike Court in Longsight, Manchester.
Dwelle partnered with Halliday Meecham Architects for technical support and will work with Claudia Gilbert of Creative Planning on public consultation and planning, Joule Consulting Engineers and BCM on sustainable building services design.
Dwelle beat six other practices to the work following a competitive pitch. The £7m project involves over-cladding, adding new roofs, entrances, internal communal areas and external landscaping.
Ric Frankland, director of Dwelle, based in the Northern Quarter, said: "Although our recent focus has been on the design and manufacture of micro-buildings, this project is on a different scale."
The first public consultation meetings took place earlier this month, when the initial design ideas and proposed materials were shown to residents.
Frankland added: "One of the most important aspects of our work will be listening and responding to the residents. Understanding their needs and the aspirations of the stakeholders will be the key to the project's success."
Dwelle aims to submit a planning application in April and tender the project for a construction partner during the summer. The start on site is likely to be in January 2012 with construction expected to last at least 18 months.