Care UK and Bruntwood, advised by Indigo Planning, have been granted planning permission to deliver a 44,500 sq ft care home within the former walled garden of Abney Hall in Cheadle.
Abney Court will comprise 80 bedrooms, communal dining and lounge areas, hair salon, spa and library, landscaped gardens and private patios.
The new building will replace the existing 1980s red brick Abney Court with a more sympathetically designed building set back from the listed wall.
Next to the care home, the grade-2*-listed hall, formerly Cheadle town hall, will be refurbished as a business centre operated by Bruntwood.
Charlotte Blinkhorn, senior planner at Indigo Planning, said: "This development will help address a recognised and growing need for dementia care, as well as helping ensure the future of a Grade II* listed building in the green belt."
Footpaths and the car park will be improved and the listed garden wall repaired. Work will begin on site in the summer.