A source said the guidance will focus on altering road layouts and discouraging cul-de-sac development. It will also indicate how developers can raise housing densities 50% to 30 dwellings a hectare, as recommended in PPG3, without creating cramped developments.
The source said: "People in the industry have been asking, 'What does PPG3 mean?' The dilemma has been how to raise densities without lowering quality.
"This can be seen as an anti-cul-de-sac, anti-generic road layout report. It will tackle the failings of suburbs and break up the Brookside Close-style of development. This is a more intelligent approach to space."
He said road layouts in the past had assumed a high level of car ownership. More emphasis would now be placed on public transport and providing local services.
Other initiatives will include reducing the space between semi-detached houses. Planning minister Lord Falconer is expected to make an official announcement about the guidelines on 11 September.