The recommendation comes ahead of the council's executive meeting on 5 September, when the final decision will be made.
The panel's recommendation follows assessment of the proposals submitted by the three shortlisted developers, which also included Queensberry Real Estate.
The chosen developer will work closely with the council and M&G Real Estate - the owners of the Friary Shopping Centre in the town centre - following the formation of a landowners' partnership.
Councillor James Palmer, deputy leader of the council and lead councillor for town centre planning and infrastructure said: "Following the evaluation panel's initial selection of a potential development partner, we carefully re-examined our original recommendation in light of the recent site acquisitions by the Prudential through its property fund M&G. The panel assessed the developers' compatibility with the primary landowners together with evidence of relevant and recent experience, capability and an appreciation of our development objectives. In reconsidering our decision, the panel has reached a different conclusion, which we believe brings forward the most timely and effective development programme with the primary landowners and the right development partner.
"Presentations by the shortlisted developers and engagement with local interested parties helped to inform the panel in reaching their decision. This recommendation aims to move the North Street project forward at pace with Land Securities working closely with the council and its landowner partners."