Manchester City Council has approved plans to create a 100,000 sq ft medical research facility in the city centre.
Architects Sheppard Robson has designed the full renovation of the historic red brick building on Oxford Road along with a new five-storey extension.
Joint venture developer Bruntwood and Manchester Science Parks said there was already strong interest in pre-lets of the development, which it hoped to complete next year.
It will be the last of Central Manchester Hospitals Trust sites around Oxford Road to be refurbished.
The Children’s Hospital, Manchester Royal Infirmary, Dental Hospital and St Mary’s women’s hospital were transformed under a £500m privately-funded deal in summer 2009.
The project is expected to be paid for with private and public money – although an exact funding model has not yet been decided.
Along with works to the building itself, which dates back to 1814, the project will also include a new pedestrian route connecting hospitals in the area, and will create a link between Oxford Road and Nelson Street.