Dubbed the 'Avenue', the project is the latest in a line of high-profile schemes in the area for investment and development company Allied London Properties.
The stand-alone 3,700m 2scheme will house 750m 2of shops, a 370m 2restaurant, a new gallery and 2,400m 2of office space.
The long-awaited green light, which was finally given by Manchester City planners on Thursday, coincided with the successful £500 million management buyout of Allied.
Heading up the project, which will be constructed by Bovis Lend Lease, is design director Tim Evans.
The development is due to start in March next year and is expected to complete in September 2008.