Gentoo Group is to take control of the group, subject to the approval of housing regulators on both sides on April 1.
The organisations have been in talks since last year over the deal, which would result in WSHA's 3,000 homes coming under Gentoo's ownership.
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Gentoo recorded a deficit of £20.5m last financial year. It only manages homes within Sunderland but has developed homes for sale in other areas.
Inside Housing reported WSHA will continue to exist under its own name.
The organisation told the website that the move would 'future-proof' the business as a means to 'weather the challenging times ahead'.
Duncan McNaught, chief executive of WSHA, said the Scottish Housing Regulator would give its verdict on the proposal at the end of the month.
He commented: "We believe this partnership will develop our business in Scotland and create new and improved strategies to address our tenants' top priorities. The two organisations share similar values and a strong cultural fit and we have joint aspirations around creating sustainable communities and homes that are fit for the future."
(IT)
