Marks & Spencer has signed an agreement for lease with Oldham Council for a 51,000 sq ft food store at Oldham Mumps.
The store will anchor the Prince's Gate development when it opens in 2017. The wider scheme will deliver around 150,000 sq ft of retail space, up to 800 homes including apartments and 700 car parking spaces.
The terms of the deal were not disclosed and delivery options for the development are yet to be finalised by the council's executive.
Cllr Jim McMahon, Oldham Council leader, said: "We never doubted it would happen but it's a really positive milestone today to be able to officially confirm Marks & Spencer is coming to Oldham."
Oldham Council and M&S began negotiations in 2011.
CBRE advised Oldham Council.