Work to prepare the site, which is also set to include office space and shops, is set to commence early next year with the project expected to be fully developed by 2025.

The local authority owns 4.7 hectares of brownfield land at Fountainbridge, 1.2 hectares of which have already been used to build the new Boroughmuir High School, leaving the remaining land for mixed-use development.

A development partner is now being sought to deliver over 400 new homes across four blocks, comprising a mix of social housing and homes for sale. Retail and business units will also be developed on the ground floors.

Members of the council’s housing and economy committee will consider a report which will include options for the site to the east of Gilmore Park, which has been designated as office-led development in the masterplan.

In addition, a small proportion of land (0.57 hectares) is being sold to Vastint Hospitality BV by the council to enable their development, which will complement the place-making requirements of the wider masterplan.

Councillor Kate Campbell, convener of the housing and economy committee, said: “Regeneration of Fountainbridge is hugely important for the city’s economy. At the heart of this development is our aim to ensure that prosperity and growth benefits everyone, in every neighbourhood.

“The committee’s decision is a huge step towards the transformation of Fountainbridge, making it an even more desirable place to live and work.”

Councillor Lezley Marion Cameron, vice convener of the housing and economy committee, said: “I’m delighted that Fountainbridge will become home to a wide range of different house types and tenures so close to the city centre, which also includes a substantial element of social and family housing.

“Our aim is to create a successful and high quality mixed use development which balances residential, commercial and community uses in a sensible, sensitive and sustainable way.”

An Energy Strategy for the site is also being developed, with the council aiming to introduce a district heating scheme if viable.

Consideration is also being given as to how the industrial heritage of the site can be celebrated, with a refurbishment of the adjacent former North British Rubber Company works into a new home for Edinburgh Printmakers already underway.