The locally based practice, which is part of a consortium led by developer ISIS, saw off five other bids, including proposals by Allies & Morrison, Make and Surface Architects ( Shortlist of six revealed for Leeds factory site).
The prize project is seen as a 'flagship development' for the city's Holbeck Urban Village renaissance programme and will transform the abandoned 19th-century factory in Globe Road, a local landmark with its unusual Italianate towers.
Bauman Lyon's winning scheme is expected to create 150 homes, a new square and around 13,500m 2of commercial space on the plot overlooking the Leeds and Liverpool Canal.
Yorkshire Forward, the project's backer, said talks with the ISIS consortium are not quite finalised, but the AJ understands a deal is expected to be signed in April.
Chris Hilton, Holbeck Urban Village project leader for Yorkshire Forward, said: 'The Tower Works site is an integral part of the renaissance programme.
'The aim is to create a sustainable community with a distinctive sense of place, while retaining the area's unique character by combining the rich architectural legacy of the industrial age with high-quality contemporary design.'
The first factory was built on the site in 1864 and was named Tower Works after the three impressive Italian-styled towers - one of which is believed to have been copied from the Giotto campanile in Florence.
Work is expected to start on site late next year.