The scheme includes about 450 homes on two 1 ha sites, at the Hornsey Road Baths and Barnsbury Estate, which are several miles apart.
It is believed that the project will be developed as a PPP between developer Chancerygate and a registered social landlord.
Islington council wants a substantial amount of social housing built on the Hornsey Road Baths site along with leisure facilities, a theatre and 3700 m2 of office space. It is negotiating a section 106 planning gain arrangement to that effect.
More expensive housing would be built on the Barnsbury complex site, which is where the developer would make its profit.