Steve Morgan's Harrow Estates has been granted outline planning permission by Manchester City Council for the development of a 44-acre site in Openshaw West, east Manchester.
Dreyfus Village will encompass 1,100 residential units and approximately 8,000 sq ft of commercial space, including offices, retail and leisure facilities with a communal space and central events area.
The new neighbourhood has been named after French entrepreneur industrialist Charles Dreyfus, who founded the Clayton Aniline Company which was originally on the site.
Urban regeneration company, New East Manchester, will now work with Harrow Estates and architect Taylor Young to develop the masterplan.
The brownfield site, acquired by Harrow Estates following a competitive bidding process, was last occupied by CIBA and has been in use for chemical production since the 1870s.
Eddie Smith, chief executive of New East Manchester, said: "We want to create a high quality, family-focused neighbourhood which offers a range of generously proportioned houses and apartments that meets changing family needs. Dreyfus Village is conveniently located in a pleasant, canal-side location, close to Manchester city centre."
Mike Riding, managing director of Harrow Estates, said: "This is an important step in the regeneration of East Manchester and a major opportunity at the heart of the masterplan area. The combination of homes, offices and community facilities is just what the area needs and we have enjoyed working with Manchester City Council, New East Manchester and the community to transform this old industrial site and develop a shared vision of the future."
The site will now be prepared for the construction of the first phase of housing, which is due to start in 2010.
Liverpudlian Morgan founded housebuilder Redrow and was chairman until 200.