Manchester City Council has gained £6.54m to transform the empty Whitebeck Court tower block into 92 new flats.
The development, situated off Victoria Avenue East in Charlestown, is aimed at providing new accommodation for the elderly within the area.
The council submitted one of 25 successful bids to the Department of Health Extra Care Fund, and was awarded the second largest allocation of funding in England.
Facilities will include a village hall-style day centre, restaurant, assisted bathing facilities, hairdressers and treatment room, shop, communal lounges, quiet room, and computer room.
Some facilities at the site will be available to the wider community as well as residents, including a day centre offering nearly sixty places.
The council is working in partnership with Northwards Housing and Great Places Housing Group and plan to start work on the development spring next year.
Councillor Basil Curley, executive member for Adult Social Care, said: "This investment sees Manchester at the forefront of valuing older people. It will give them the freedom to be independent whilst having top quality facilities to enjoy."
Councillor Val Stevens, deputy leader and lead member for Valuing Older People, added: "Funding like this is great news and is also vital to ensure that older people are well looked after for many years to come. The transformation will see the tower block become a scheme which gives older people the dignity and respect that they deserve."