The £200m St Michael’s development, off Deansgate in Manchester City centre, has been given the green light after it was not called in by the Secretary of State.

The scheme on Jackson’s Row will include an international luxury five-star hotel featuring 216 bedrooms and 189 high-end apartments in a tower reaching 39 storeys.

Plus a 148,000 sq ft of office space, 33,000 sq ft of leisure space - including an outdoor rooftop terrace - and a boutique five-star hotel in the former Bootle Street police station which will retain its frontage.

The ex-England footballer Gary Neville, on behalf of the St Michael’s Partnership, said: “We are delighted that the Secretary of State has decided to not call in our revised plans for St Michael’s and that the vision for this landmark mixed-use scheme will be realised.

“It’s been more than a decade since the idea to regenerate a strategic city centre location was first considered – and our whole team is very pleased that we can focus on delivering this project for Manchester, bringing new high-quality development that will enhance the city’s position both nationally and internationally.”

The project will create close to 1,500 jobs, with a further 270 employed throughout the construction phase.

Sir Richard Leese, Leader of Manchester City Council, said: “Investment in Manchester is crucial to support our on-going regeneration and St Michael’s is a case in point for the type of high-quality development that our city centre needs. The Jackson’s Row area has been underwhelming and underused for too long and we welcome the decision by the Secretary of State to move this important project in to the next phase.”