Trafford Council has given the green light to the £1bn Trafford Waters scheme by Peel Land and Property in Manchester.
Over the next 20 years an expected 5,000 jobs will be created as well as 3,000 new homes, local amenities, over 100,000 sqft of commercial space and a new primary school due to the scheme.
James Whittaker, Peel Land and Property's Group Development Director, said: "Trafford Waters will bring a unique neighbourhood to Greater Manchester, which will not only provide much-needed residential housing but also office space which will help unlock business and employment opportunities.
"The development will be sustainable and feature cycleways, plenty of landscaped, green spaces and waterways, making it a really attractive place to live, work and play. It will be a high quality development that will feature everything families would expect an established urban community to have and we're very excited to be bringing this to the people of Trafford."
The new neighbourhood will be situated on 50 acres of land along the banks of the Manchester Ship Canal within Traffordcity, home of intu Trafford Centre and other major regional attractions.
Cllr Sean Anstee, Leader of Trafford Council, said: "Trafford Waters has all of the characteristics to be a model for urban regeneration and the creation of a high quality place that people choose to live and work. This sustainable development will bring significant investment into Trafford alongside a further boost for our local economy, already the most resilient in the North West."
Peel has directly committed to spending £30 million towards the new extended A57 road into Traffordcity at junction 10 of the M60, which includes a new lifting bridge link crossing the Manchester Ship Canal adjacent to Barton Bridge. This new link bridge and road is due to be completed next year, which will further enhance its accessibility.