The plans are the latest phase in a long-running attempt to stamp out "unsightly" flyposting in the Capital's most popular locations.
Under the proposals, seven advertising boards will be created and managed by Unight, the coalition of 48 Edinburgh nightclubs and entertainment venues set up to tackle violence, drugs and flyposting in the city centre.
If approved by the council, the advertising boards would be erected in suitable spots at the West Port gap site, the council buildings on Kings Stables Road, the Old Greyfriars Hostel in the Cowgate, the Salvation Army underpass site at the Cowgate, the Bristo square underpass, and the Blackfriars Street Radisson Hotel car park.
The Unight scheme has had considerable success in tackling trouble at city nightspots, with Edinburgh's clubs and bars joining forces with the police to combat drug use and violent or antisocial behaviour at nightspots.
Unight members have already taken steps to stop illegal flyposting, making it a condition of their contracts with promoters that no illegal advertising be used.
This latest phase of the flyposting scheme would see clubs operate advertising boards, with space sold to promoters at a minimal cost. The boards would be non-profit making, with all the money raised going towards the cost of managing the initiative.
Under a management agreement drawn up between Unight, police and Edinburgh City Council, the areas around the legal boards would be kept clear of illegal flyposters.
In addition to this, city centre police will work to identify and charge illegal flyposters, and identify them to the club operators.
Promoters found to be using illegal flyposting will be banned for three months from running an event at any of the venues operated by the members of Unight.
Sarah David, owner of leading city nightclub Cabaret Voltaire and joint chairwoman of Unight, said:
"Unight took it upon itself to impose a ban on illegal forms of advertising in an attempt to aid the clean-up of the city.
"We have rigorously enforced this ban on the premise that legal flyposting sites would be implemented in the foreseeable future.
"We have banned several promoters that operate within venues that do not adhere to this policy and I do firmly believe that we have contributed greatly to the clean-up of the City Centre.
"A correct and legal method of street advertising will only add to the already flourishing music and arts scene in Edinburgh."
Inspector Bruce Johnston, sector inspector for the city centre, said: "The clubs have been very pro-active in this. We have worked closely with them and the council to identify these sites, and this is something which I think could be a big success."