The Government has accepted the Association of Greater Manchester Authorities' case for a new combined authority in the metropolitan country to co-ordinate economic development, regeneration and transport provision.
The new body would replicate much of the work done by the former Greater Manchester County Council, abolished in 1986, including similar powers to Transport for London's.
It would be responsible for economic assessment but many functions would be held concurrently with the existing councils.
"Today I'm announcing historic proposals for the country's first ever combined authority for all of Greater Manchester that will use devolved powers from Whitehall to drive forward economic growth," said communities secretary John Denham.
"This flagship body brings together 10 local authorities who will act together to create jobs, improve skills, tackle climate change and drive regeneration."
The Conservatives have already indicated that all statutory regional planning would cease if they win the general election.
Comments on the proposals are required by 14 July.
