The agreement will now see FEC work with the authorities to redevelop the 9.5-acre site to create new homes and a range of other uses.
In addition to new housing, 25% of which will be affordable, the site will provide a hotel, leisure uses, new shops, offices and community facilities.
The scheme forms part of Trafford Council’s Civic Quarter Area Action Plan for Stretford.
Gavin Taylor, Managing Director at FEC Manchester, said: “It’s incredibly exciting to be able to formalise our agreement with the Council and GMCA so that we can get underway with delivering the new vision for this regionally important project.
“We recognise that the former police station site is in a high-profile location and the local community want to see it brought back into use for the good of the people living here.”