The government announced plans for "significant" investment at the Aylesbury estate in March's budget, as part of a £150 million fund it will create to accelerate regeneration projects in London.
Private sector developers will now be invited to bid for elements of the scheme, working closely with Southwark Council during the project.
Developers have already shown their interest in discussions with the Greater London Authority about the Aylesbury estate.
Councillor Peter John, leader of Southwark Council, said: "It is great that the government and the Greater London Authority recognise what we're doing here in Southwark to create thousands of much needed new homes.
"So while we cautiously welcome today's announcement, we now need to see the detail.
"Our plans for the redevelopment of the Aylesbury estate require at least 50 per cent of the new homes to be affordable and of those 75 per cent to be available at traditional social rent levels.
"While we welcome a scheme that could allow the new homes to be built faster, we are very clear that we would veto any attempts to reduce the proportion of affordable housing or to increase the rents.
"We are proud to have the largest council house building programme in the country, delivering 11,000 genuinely affordable homes over the next 30 years.
"We're leading the way by doing all we can to do the best for our communities and have fully costed plans for all of our major regeneration schemes, including the Aylesbury, which remains on track despite having £180 million of government PFI credits withdrawn in 2010.
"So let's see whether others can match our level of ambition to get new homes built and whether this latest scheme from the government and GLA is really able to deliver something better for local people."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched