Argent, St Modwen and Taylor Wimpey are all in the running to win a new Ministry of Defence (MoD) contract.
The MoD is considering the three tenders to build a new housing complex and garrison in Hampshire.
The project will see 4,500 new homes, schools and leisure facilities built on a 1496.5km2 brownfield site in Aldershot.
The three developers have been whittled down from 80 initial bids for the contract.
The Home and Communities Agency and Defence Estates will choose the winning bid by the end of 2010 with work expected to begin on the project in 2012.
Argent UK project director James Heather said: “Argent is both extremely pleased and excited to be involved in the proposed Urban Extension to Aldershot.
“Project experts from our London and Birmingham offices are currently progressing our proposals in discussion with the (landowners) Defence Estates, for what we hope will create a lasting legacy for a very sustainable, high quality mixed use development on the 1496.5km2 site.
“Discussions with the Defence Estates will hopefully be concluded towards the end of the year and we very much hope to be selected as their preferred development partner.”