The Prince’s Gate development at Oldham Mumps aims to deliver 13,900 square metres of extra retail space, up to 800 homes, and around 700 car parking spaces.
At the centre of the proposals is a glazed retail development that would be located on an existing Park and Ride site.
Retail giant Marks & Spencer said it intends to open a new store in the new Prince’s Gate development, with the council adding that "both parties are hoping to finalise an agreement shortly".
Oldham Council’s cabinet approved the masterplan on Monday. The next steps are for a planning application to be submitted for the overall scheme and for a replacement Park and Ride facility.
Jim McMahon, Oldham Council leader, said the plans were one of the "most ambitious redevelopments for Oldham town centre since the 1980s".
He added: "[The project] will be developed in phases starting onsite in 2015. The next significant phase, including opening the new retail development – and the proposed M&S store – is set for 2017."
The council hopes that the plans would transform the area, attracting new retailers and capitalising on the arrival of the Metrolink earlier this year.