Cells self-organize into functional, ordered structures during tissue morphogenesis, a process that is evocative of colloidal self-assembly into engineered soft materials. Here, we show that elastic substrate deformation-mediated mechanical interactions between cells can lead to their mutual attraction and alignment into ordered multicellular structures. By combining a model for actively contractile cells as force dipoles embedded in an elastic medium, with an agent-based model for cell movements, we find that model cells align into chains, rings and branched networks. These structures resemble biological patterns such as endothelial cell networks occurring during vasculogenesis. Motivated by the structural features of biological networks, we characterize several morphological features from simulation, including junctions, branches and rings. Further, we predict how these metrics depend on cell contractility, cell density, the stiffness and compressibility of the substrate, and on noise in cell dynamics. We show that network formation is expected in an optimal range of substrate stiffness where the elastic interactions between cellular dipoles is strong. This potentially reconciles opposite dependencies of network formation on substrate stiffness seen in disparate experiments with endothelial cells cultured on soft substrates. Further, we identify generic differences between network morphological features at high and low Poisson's ratio of the elastic substrate, which have implications for network efficiency and robustness. We thus show that mechanical interactions can direct multicellular self-organization into networks, and provide design principles for tuning substrate mechanics to obtain network structures compatible with biological transport functions.