The North West Development Agency has agreed to provide £8.97m, and the ERDF £1.79m, towards infrastructure to facilitate redevelopment of Salford's Chapel Street area.
The money will go to providing roads and public spaces for the development which aims to create 220,000m² of commercial space for offices, retail and leisure, 849 flats and a 390-room hotel.
"The proposals for Chapel Street will create a vibrant new city centre in Salford and I am pleased that this funding means we can begin to turn these plans into reality," said NWDA director of land and property Paul Lakin.
"This illustrates how our targeted interventions can help to stimulate private investment and support economic recovery. The Chapel Street area has huge potential but needs significant public investment to create the type of environment which is essential to attract high levels of private investment. It will be a monumental project which will mean more jobs, economic vitality and a better future for both Salford and Manchester."
The proposals were given planning consent in January.
