The £33m project is the first contract agreed between A2Dominion and Henry Construction.
The existing buildings form a crescent shaped residential development. The site is being redeveloped following an explosion on the site in 2017 leading to several dwellings being demolished and other neighbouring properties were left uninhabitable.
Works consist of the demolition of remaining studios and the design and build of 140 affordable homes together with associated infrastructure and site development works.
Works will commence this month with the proposed replacement building rising to six storeys.
Steven Waite, director of technical & commercial at A2 Dominion, said: “We hope that the regeneration of Gibbs Crescent will add real value to the local area and provide much needed affordable family homes for local people.
“A2Dominion aim to provide quality, well designed homes with managed facilities and community focused services for our residents.”
Joe Bonner, director at Henry Construction, said: “We are extremely proud to have successfully secured our first project with A2Dominion to deliver much needed affordable homes in Oxford.
“We look forward to working alongside A2Dominion, Employers Agent and Cost Consultants Silver, Architects HGP and Structural Engineers Reuby & Stagg.”