The 40,000-student university is one of Britain's largest and its bosses now say the standard of its research is competing with Oxford, Cambridge, and University College London.
A major national review says Manchester produces more world-class research than almost anywhere else in the country.
It is the country's leading institution for cancer research, according to the Higher Education Funding Council, which grades every university department and piece of research out of four stars.
Its latest tables show Oxford and Cambridge still get more four and three star grades than anywhere else. UCL in London came third and Manchester followed just behind.
They said 90 per cent of the cancer research at Manchester was of an 'internationally excellent' standard, better than anywhere else in the country.
The university was founded in 2004 from a merger between UMIST and Victoria University and its bosses hope it will be rated among the top 25 institutions in the world by 2015.
The improved rankings are now likely to bring a windfall of extra cash to the region, although new funding deals will not be decided until March.
Alan Gilbert, president of the university, said: "We are surprised by the speed with which we have improved.
Rapid
"We have been following a very rapid trajectory since the merger. One of the main aims was to challenge the Golden Triangle of Oxford, Cambridge and UCL, and there was a feeling we would have to wait longer. We have added 1,000 new researchers since 2004 who are all of world-leading status.
"This will translate into a substantial input in our financial position. It will of course depend on the overall volume of funding available during these harsh economic times, but we will have improved our share."
Manchester was also rated top in the country for nursing, dentistry, and sociology research.
There was also praise for the university's music department, where half of all research was 'world leading'.
Salford, Bolton, and Manchester Metropolitan Universities also improved their rankings and expect extra cash.
Salford won special praise for its research in architecture and information management.
An MMU spokesman said: "We're top ten in the country for English research, which for a new university is excellent. More of our staff are involved in research than ever before, which feeds back into the quality of teaching."
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I studied in İnternational relations department in Manchester University.very glad to hear the good news in connection with great progress within the university. I am proud of to be graduate of this establisment. İLYAS ORHANLI
well done manchester the breaking up of the monopoly of the southern uni's is a major acheivment
I always find these 'league tables' etc a bit woolly in the way establishments are graded.
I was reading about how they are graded and the many numerous factors involved in compiling the list.
It states Manchester (which always has been a top University) is the fourth best regarding research. So does that mean its PhD program is the fourth best or is outright the fourth best University? What about the grading of bachelors degrees?
Also, I was reading that Teesside (ex poly) has one of the highest rates of leavers walking into technology jobs which pay more than the national average. However, as an ex poly, will it ever get recognition in the elite world of 'red bricks'?
I can’t help feeling that prestige, history and former alumni count a lot on how an establishment is graded.
Saying that, we know to get into Oxford, Cambridge, Durham etc, etc is very difficult and they can pick and choose. However, when it comes to success, employment after a bachelor’s degree and potential earnings surely some of the ex ploy’s excel because they teach computing, engineering and such like rather than the traditional History, English Literature and Latin!
I am unsure to the real validity of ‘perceived quality’ rather than 'prestige' when it comes to compiling the list of the best?
I was lucky enough to get into a 'red brick' in the 70's however, regarding it as being better than others is very subjective as 30 other establishments ran the same course?
Just a thought?
I agree, I think regardless of league tables, Manchester University (and UMIST before they merged) has always been very highly regarded, particularly in technology. The catalogue of scientific and technological advances attributed to Manchester University is impressive and recognized the world over.