Members of the Wythenshawe Area Consultative Committee have approved Transport for Greater Manchester's plans for a new transport hub.
The decision follows a public consultation held earlier this year involving local residents, businesses, elected representatives and Manchester City Council officials.
The new interchange, located off Poundswick Lane, will include enclosed waiting areas, CCTV, a Travelshop and environmentally friendly technology to produce light and heat.
Cllr Andrew Fender, chairman of the Transport for Greater Manchester Committee, said: "The new interchange will bring a wide range of benefits to Wythenshawe and will give the community a modern transport hub in addition to being an advantage for local businesses and employers.
"It will also capitalise on the arrival of Metrolink in Wythenshawe, as part of the new line being built to Manchester Airport, by giving passengers an easy and attractive way of switching from the tram to the bus and vice versa."
Cllr Nigel Murphy, Manchester City Council's executive member for environment, said: "This transport hub will deliver the high quality facilities that Wythenshawe people deserve, providing new connections to destinations across Greater Manchester for both work and leisure, which will give people a real alternative to the car.
"The Metrolink line is a vital step for the future of Wythenshawe, underpinning the growth of the town centre, while providing essential links between the city centre, Manchester Airport and the Airport City enterprise zone."
The WACC comprises of Wythenshawe's elected councillors for each of the wards of Baguley, Brooklands, Northenden, Woodhouse Park and Sharston. The Committee has delegated powers to approve planning applications within the Wythenshawe area.
A construction firm will be appointed by TfGM next year, with the new facility due to open in 2015.