Rochdale Council and Riverside Group have signed a land pooling arrangement to facilitate the ongoing regeneration of Langley Estate, Middleton.
Riverside Group, a registered provider of social housing, is a major landowner at Langley.
The arrangement will enable the council to progress with development plans for the area following the end of the Housing Market Renewal programme.
Set up in 2003 by the Labour government, HMR was created to stimulate the housing market in areas of low demand and was intended to continue for 15 years. The land pooling agreement has been signed under HMR.
Mark Barker, a partner at law firm Cobbetts LLP, who advised Rochdale Council on the deal, said: "The continuation of development in the current economic climate requires the public sector to take the lead and think outside the box, which is exactly what the council has done in relation to Langley."
Steve Bloomer, Langley area director at the council, added: "This agreement will help both partners develop sites that are in joint ownership whilst ensuring that receipts are reinvested back into Langley in the future"
Since 2004, Barker said £12m was invested in improving Langley Estate under the HMRI scheme.
Development and asset management consultant, Eye, also advised Rochdale Council on the deal, while Riverside Group was represented by Trowers and Hamlin.