The scheme, for developers Urban Catalyst and Atlantic Estates, was chosen by Southwark council from a shortlist of eight proposals after extensive public consultation. An official announcement is expected any day.
The council wants the redevelopment to bring Bermondsey Square, which hosts the early Friday morning Caledonian Antiques Market, into use throughout the week.
Arup Associates director James Burland said the hotel and apartment elements of the scheme would be prefabricated off site.
Burland said: "We have taken a lot of care over the environment and lighting for the market, because most of the trading takes place in the dead of night. The double-height shopping arcade is designed to shelter stallholders in bad weather."
He added: "It is a great step forward in mixed-use development. They took the brief for the site from a survey of local people. It will be a regenerative step for Bermondsey." The redeveloped Bermondsey Square is intended to become a leisure and tourist destination after the year 2000, served by Bermondsey Station on the Jubilee Line Extension. The council hopes that the market will extend its hours and area of operation.
Arup Associates' scheme redefines Bermondsey Square as a 10 000 m2, eight-storey oval. The centrepiece is a lighting halo that will illuminate the market.
The oval marketplace will be surrounded by a double-height shopping arcade, which will be overlooked by offices at mezzanine level, two storeys of hotel development and up to four storeys of apartments.
The development will be stone-clad with metal and glass features. The entrance to the hotel will be on Tower Bridge Road and Abbey Street, set back from the north-west corner of the scheme. It will also feature a three-screen arts cinema.
The other shortlisted teams were: Robert Ian Barnes Architects, with developer Enterprise; Terry Farrell and Partners, with Manhattan Loft Corporation; Dransfield, Owens & Desila Architects with developer Angel Properties; Jestico + Whiles, with Barratt; Andrew Cowan with Bermondsey Corp; and architect Macreanor Lavington, with developers Lake Estates, Baylight and First Premise.