The functions are to be joined into a single, multi-disciplinary team. Overall the redesign will see the number of full-time equivalent posts in the department reduced from 272 to 193.
Posts being removed include roles linked to funding streams which are coming to an end, such as Working Neighbourhoods Fund and New Deal for Communities, and duplicated back office functions.
The council's director of regeneration Waheed Nazir said: "By merging these services together I believe that we can deliver a more focused, efficient and multi-skilled service, removing duplication and delivering better value for money."
Recruitment to all posts within the new structure will be handled through a formal application process. Nazir added that talks with trade unions and staff on the proposals outlined in the review are ongoing.