Work on the first major development plot at Chapel Street, part of the wider Salford Central scheme, will start in the next few weeks.
English Cities Fund, a joint venture between Muse Developments, Legal & General and The Homes & Communities Agency, is delivering the development in conjunction with Salford City Council.
This first phase, which the HCA and Greater Manchester Combined Authority have agreed to invest in, will see the creation of 14 townhouses, 83 apartments and commercial premises, including a shop.
When complete Salford Central is expected to create around 11,000 jobs, 2.3m sq ft of commercial space, 849 homes and 390 hotel rooms.
Phil Mayall, development director at ECF, said: "This first phase will kick-off the transformation of Chapel Street and marks the beginning of construction of the Salford Central development plans.
"We have been working closely with residents and community groups for a number of years to ensure the plans deliver what the people of Salford want."
Cllr Derek Antrobus, Salford City Council's assistant mayor for strategic planning, said: "This exciting and ambitious project will lead to new homes, offices and shops, while creating a vibrant hub at the heart of the community.
"As well as new homes for Salford people, building them close to the city centre means fewer extra commuter journeys. It also eases pressure on greenfield sites."
The HCA has invested £3.4m into the scheme through its Get Britain Building Programme. The GMCA has also invested £3.4m from its Growing Places fund.
Deborah McLaughlin, executive director North West at the HCA, said: "We joined forces with our partners to unlock this development and the mix of new homes and commercial space is set to help meet local housing needs while creating job opportunities.
"We're looking forward to seeing how this scheme will transform the area and we'll continue to work with the partners for the benefit of Salford."