Developer St Modwen is in advanced negotiations to prelet the 50,000 sq ft office in the next phase of its £100m Wyhtneshawe town centre redevelopment.
Manchester City Council is expected to approve the deal at its full executive meeting in December.
Speaking at BCSC this week, Bill Oliver, chief executive of St Modwen, told Place the deal was agreed 'subject to contract'. The pair are finalising the details of a 20-year lease at an undisclosed price.
The council will use the Etrop Court building as its main South Manchester area base, consolidating 500 staff from various teams into the new office.
Construction is due to begin in February or March and be completed by the end of 2010.
The two ground floor units below the office space are prelet to Netto and Wilkinson. The fully let scheme would make a solid investment prospect with such strong covenants but Michelle Taylor, regional director of St Modwen, hinted against a sale and said there was more work still to be done at Wythenshawe. St Modwen enjoys a £2m annual rent roll from earlier phases at Wythenshawe, where it has been redeveloping the town centre for 12 years.
The council declined to comment.