The PFI deal is worth £800m.
A business case will be submitted to the Department for Transport (DfT) for approval in April. The contract is expected to be signed in July and work to start in January 2013.
Funding for the scheme follows a successful bid for a government grant of approximately £14m a year for 25 years from the DfT, with the London Borough of Hounslow funding the rest of the contract payments.
The PFI is one of only three which were up for grabs across the country, and the only one in London.
The first five years of the contract will see Vinci Ringway make an initial investment of £100m to upgrade the borough’s network of 259 miles of road and 458 miles of pavements. This will then be maintained to the improved standard for the rest of the contract.
The deal includes street lights, signs and furniture as well as road surfaces, drains and gutters.
As part of the deal, 200 council staff will transfer across to Vinci Ringway through TUPE arrangements.
Cllr Corinna Smart, cabinet member for environment at the council, said: "I am delighted that we have reached the significant milestone of announcing our preferred bidder. This contract will literally change the face of the London Borough of Hounslow. It will be a massive boost for residents, businesses and visitors.
"We know our roads and pavements are in poor condition, and to get them up to the standard we want would cost more money than we could ever afford. This PFI provides an affordable way of tackling the problem and getting shot of the grot.”
Vinci bid director Phil Jackson said: "We are absolutely delighted to have been chosen to work with the London Borough of Hounslow on this pathfinder highways maintenance project. We have developed a strong partnership working relationship with our colleagues from the client team during the bidding process and are confident that together we can provide a world class highway service in Hounslow."
Ringway group managing director Scott Wardrop said: "Ringway is a company that was 'born' in London in 1976 and we have been providing high quality highway surfacing and related services to the residents of Hounslow for the last 20 years. We are delighted that we will be able to continue that relationship for another 25 years through this highway PFI project that helps regenerate the streetscene of the borough."