Peter Brett Associates has secured planning permission on behalf of PSP Bolton for the development of up to 100 houses and 4,305 sq ft of retail space on a former college site.
The six-acre site, known as Westbrook Gateway, is located on the edges of Bolton town centre and occupies a prominent position close to both the A666 and Bolton Railway Station.
It has been vacant since the college relocated to new facilities in 2010.
Jonathan Wadcock, associate planner at PBA's Manchester office, said: "The granting of planning permission for the Westbrook Gateway scheme marks a major step forward in realising the redevelopment of the former Bolton College campus.
"This is an important site that is well connected to the town centre. The delivery of these proposals will contribute to the regeneration of the town centre's southern approaches and deliver high quality housing in a sustainable location."
PSP Bolton LLP is a joint venture between Public Sector Plc and Bolton Council. The objective of the partnership is to enable Bolton Council to maximise the potential of its property assets in the face of ongoing budget constraints.