But the tenants' federation has warned that they will not accept it.
They cite the problems suffered by Glasgow Housing Association, which took over 80,000 homes in March 2003, as evidence that transfer does not work.
The federation's convener, George McKie, said: "We have watched what happened in Glasgow with interest.
"We will organise against transfer and hopefully make the government look again at housing. Council housing is a good system and I see no reason why it shouldn't continue."
If the transfer does go ahead, the Scottish executive will write off Edinburgh council's £300m debt.
It is currently negotiating a funding package with the council, which could be worth up to £2bn.
The council's lead member for housing, Sheila Gilmore, said: "Edinburgh could see a once in a lifetime investment."
In its 10-year housing strategy, the 25,000-home council also called for funding for 10,000 new affordable homes and launched the "Edinburgh standard", a version of England's decent homes standard to which it wants all its social housing to conform.
The Edinburgh standard covers kitchens and bathrooms, security and energy efficiency and is tougher than England's target.
Source
Housing Today
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