An official announcement a major waste management facility containing an incinerator is proposed for Beddington is expected to occur within weeks.
Viridor is being presented by the South London Waste Partnership (SLWP), as its preferred bidder for a controversial new waste management plant for Croydon, Merton, Kingston and Sutton.
It wants to build its facility in Beddington Lane.
Sources have said its plans involve an energy recovery facility, which campaigners believe will be an incinerator where waste is burned to produce electricity, The facility could produce enough energy to power thousands of homes, processing more than 200,000 tonnes of waste a year from the four boroughs.
SLWP's proposals will go in front of the four councils who make up the SWLP in the coming fortnight.
If backed, Viridor will then be unveiled as the preferred bidder for the facility in the week beginning November 21.
It would then be expected to submit a planning application by the middle of next year. If succesful the plant could be up and operational by Summer 2014.
Campaigners argue incinerating waste could be harmful for the environment, as well as the health of residents, but pro-incinerator organisations have said there were no environmental problems associated with them.
residents have argued the facility will make the area south London's rubbish capital.
The plans have been met with furious opposition by campaigners.
Shasha Khan, from campaign group Stop the Incinerator, said: "We have been campaigning against any incinerator in Beddington Lane for three years. This is a bad day but we will continue to fight the plans."
Graham Whitham, leader of the Conservative opposition group on Sutton Council, said: "We have grave concerns about the facility, not just about the impact on Beddington and its residents, but we have concerns about how it conflicts with established planning policies."
It is believed the proposed application could face problems because of a plan to build some of the incinerator on metropolitan open land, backing onto Wandle Valley Regional Park.
A spokesman for the SLWP said: "Until each borough has had the opportunity to consider and take a view on this recommendation there is no preferred bidder. The procurement rules do not allow us to announce the recommendation that will be considered by the four boroughs."
Virador said it was not in the position to comment.