Salford City Council has granted planning permission for £30m student halls of residence to be built overlooking Peel Park.
Salford University said the construction of the 2,000 bedroom development will begin next year and is expected to be completed in 2013.
The new 15.8-acre site will centralise the university's accommodation on one site, replacing existing stock outside the campus including the current Castel Irwell residences.
Martin Hall, vice-chancellor at Salford University, said: "The new student residences form an important part of our plan to transform our University campus and the role we play in supporting the regeneration of Salford.
"Students, sited at the heart of our campus, will have easier access to modern state-of-the-art teaching and leisure facilities which will be shared with, and will benefit, the whole of the local community."
The development is part of the first phase of a £75m masterplan by Salford University.
Work has already started on a refurbishment of the university's Chapman Building, while planning permission was granted in August for a £38m arts building which will have performance and exhibition spaces for students and the community.
The project is being worked on by planning consultants, Turley Associates. Other companies already involved in the campus development include Davis Langdon, project and programme manager, Arcadis, cost manager on Chapman Building, Appleyard & Trew, cost manager on rest of projects, Fairhurst Design Group, architect on Chapman Building, and Stride Treglown, which designed the arts building.
Salford University said it hopes to obtain BREEAM accreditation for the new buildings. The buildings are intended to be more sustainable and will have an option of being fitted with roofs on which grass and other plants can be laid to provide natural insulation.