Leading firm Campingninja plans to set up a campsite in the Capital during August, which could host up to 350 tents for Festival-goers and performers.
One of the sites up for consideration is Inch Park, but organisers hope to announce the official location for the Edinburgh Festival Camping in the spring.
Rhian Evans, director of Campingninja, said: “There is going to be a real family-friendly feel to it.
“We are particularly excited about the Breakfast Stage where performers will be able to rehearse, which we hope will really extend the festival atmosphere to the site.”
Campingninja – which organised campsites at the London 2012 Olympics and last year’s Commonwealth Games in Glasgow – will have dedicated “quiet time” between 11pm and 7am to give campers a good night’s sleep.
On-site security and campsite managers will enforce the noise ban as well as making sure the campsite remains safe day and night.
Ms Evans said: “We know there is a huge demand in Edinburgh in August for accommodation, not just affordable but also available accommodation.
“There are some great underutilised spaces which could really benefit from being lived in.”
In the past the firm has set up campsites on sports pitches, which provides useful facilities as well as allowing the firm to give back to the community by investing funds in sports clubs.
One of the firm’s other initiatives is Project Recamp, which was set up last year in Glasgow, where the organisation donated unwanted tents and camping kit to youth groups, scouts and guides, and some homeless charities.
Campingninja has also pledged to have the site cleared up within 48 hours of the campers leaving.
The idea was welcomed by the Edinburgh Festival Fringe Society, which stressed the importance of providing a range of affordable accommodation for visitors.
A council spokesman said: “We would need to consider the proposals in detail before determining a position, as well as ensuring that the correct procedures are followed.”
The site would be open from August 7-31 with pitches starting at £12 per night.