Mayor Sir Robin Wales and his Cabinet gave the go-ahead to Bouygues and E-Central in joining Countryside Properties on the panel of developers, with Modus as a reserve.

The regeneration project involves the building of up to 10,000 new homes and two improved town centres. The £3.7 billion project aims to transform the area physically, socially and economically.

The council is working in partnership with London Thames Gateway Development Corporation to radically transform the area into a thriving place of choice for both existing and new residents and businesses.

Mayor of Newham, Sir Robin Wales, said: "We now have a strong panel of developers in place to help us meet our objectives in providing quality homes for local people and viable town centres.

"We are delighted with the range of talents that the developers offer. I hope it will be a fruitful partnership, which will result in delivering much-needed economic investment and prosperity for the area."

Future development phases, as identified in the Canning Town and Custom House Masterplan, will be tendered to the developer panel.

Nicolas Guerin, Development Director for Bouygues, said: "We're looking forward to being part of the team that's bringing this fantastic project to fruition. We're certain that the local community will quickly see the benefits of the regeneration which will bring, not only jobs, but also a new energy and places to live. It's great that we can bring our expertise and experience to help achieve that."

Richard Powell, Director of First Base, speaking on behalf of E-Central, said: "First Base, Chelsfield Partners, East Thames and Laing O'Rourke, which make up the E-Central team, are absolutely delighted to have been selected by Newham to join the development partner panel for the regeneration of Canning Town and Custom House.

"East London is experiencing massive change. It is crucial that Canning Town and Custom House benefit from this change and ensures it is to the advantage of local communities. E-Central believes that the best solutions arise through successful collaboration and this partnership is the first step in achieving these ambitions."

Director of Modus Europe, Mark Chappell, said: "Modus is delighted to have the opportunity to be involved in the Canning Town and Custom House project. We believe that with our mix of commercial skills, we can make a real difference to the positive regeneration of Newham over the long term. We look forward to working with all the stakeholders on this exciting project."

The approval of the new consortia will enable the development of the next phase in Canning Town and Custom House.

Progress to date includes Countryside developing an area around Fife Road. In addition, designs are currently being developed for the Rathbone Market site. Planning applications for these projects are expected to be submitted this year.