Manchester City Council and Manchester Metropolitan University have agreed terms for the University to take a lease of 70 Oxford Street, previously the location of Cornerhouse, from the end of April 2015.
MMU will use the building as additional teaching space for their Oxford Road campus.
The lease will start after Greater Manchester Arts Centre Ltd relocates to HOME at First Street off Whitworth Street West in Manchester city centre. HOME is Manchester's new centre for contemporary art, theatre, film and books.
The Cornerhouse is part of a site in Whitworth Street and Oxford Road that is currently being marketed to potential developers to bring forward a mixed-use scheme. Campaigners have been lobbying the council to protect the cinema building from demolition once a preferred bidder is selected from a shortlist which includes Bruntwood, Capital & Centric, Valad, First Step and Muse.
MMU's lease on the Cornerhouse is understood to be for a number of years, although MMU is yet to confirm exactly how long. According to a council spokesman, the deal will protect the building from demolition "for the foreseeable future".
More details will be announced by MMU later this week.