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A report to the city council's housing, Dundee Contract Services and environment services committee on Monday (December 7) seeks approval for developers to be appointed.
The contractors being recommended to build more than 70 new homes on various sites across the city are Muirfield, Stewart Milne and Brown.
Committee Convener Councillor Jimmy Black said: "Providing new council houses is another indication of our commitment to improving the quality of homes for tenants who are looking for social rented housing.
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"It's a welcome boost for the local construction industry, but most importantly, it means a huge improvement in the quality of life for 74 families and disabled people in this city.
"We are continuing with our programmes to bring all houses up to the Scottish Housing Quality Standard by 2015 and the start of new-build homes will underline the changing face of council housing in Dundee."
Cllr Black said the houses will be built to the council's specification and will have high standards of insulation and sustainable materials.
The new homes represent an investment of more than £7.2 million in new council housing in Dundee and it is expected that the 74 homes will be ready for new tenants late next year.
The sites are at Alloway Place, Auchrannie Terrace, Ettrick Crescent, Liff Road, St Leonards Place, Mains Loan South, Dundonald Street and Balunie Avenue.
(GK/KMcA)
