The South Shields 365 redevelopment plan "aims to make it an exciting destination every day of the year", it says.
Councillor Iain Malcolm, leader of South Tyneside Council, said: "Muse's track record of delivering successful town centre regeneration is second to none, and the company will bring further expertise, innovation and financial strength to our plans. South Shields 365 is an ambitious vision for a radical redevelopment and this appointment is a major step towards making the vision a reality."
David Wells, development director at Muse Developments, said: "This is an exciting challenge for Muse. Successful regeneration is about much more than bricks and mortar. It is about creating sustainable, vibrant communities where people are proud to live and work. South Shields has the potential to be a fantastic example of how regeneration can transform an area, and we look forward to working with the Council and the local community in achieving this."