Southwark Council leader Peter John has pledged that residents of Styles House in The Cut will be able to approve any deal with developers regarding their homes and gardens.
Earlier this month Development Securities – which has a deal with Transport for London to build above Southwark Underground Station and on the neighbouring Algarve House site – claimed to be including some council-owned land in its scheme.
Later that week the council issued a denial that it had reached any agreement with the developer.
The issue was raised again at last week's council assembly meeting.
In a written answer to a question tabled by Cathedrals ward councillor David Noakes (Lib Dem), council leader Peter John (Labour) said: "The direct housing delivery report which came to cabinet in October 2013 noted that Development Securities have proposed a jointly delivered scheme with the council.
"This scheme could be viable if it optimised the quantity of new council homes and could be supported by Styles House residents.
"Officers have met with Development Securities to explore this option. However, to date, Development Securities have not presented a proposal that can be taken forward.
"The council has not indicated in any way that it would include council-owned land, either at Styles House or elsewhere in the joint venture which Development Securities have secured with Transport for London (TfL) to redevelop the Southwark tube station site."
At last week's meeting Cllr David Noakes asked a supplementary question: "In the light of the fact that this is the second miscommunication concerning the future of Styles House and the land surrounding it, with last year's publication on the forward plan of the sale of the low-rise block, will the council leader confirm that Styles House residents will have to approve any deal concerning the future of their homes and gardens?
Cllr John replied: "Yes, I'm happy to give that [assurance]."