The project is expected to create scores of jobs and opportunities for education and training for local people.
The site - named Birley Fields - also aims to be the greenest campus in Britain.
It will replace sites in Didsbury and Rusholme and aims to bring together training facilities for teachers, nurses, social workers and other public sector professionals.
The site will be used by 5,000 students and the local community will also benefit from a skills and job centre, village hall, health centre and business centre and use of the library.
The university revealed plans to close its campus at Wilmslow Road, Didsbury, last May. They had planned to invest £19m in new teaching blocks in the suburb, but residents opposed the scheme, arguing that expansion would create car parking problems and disruption.
The new Hulme campus will be adjacent to MMU's existing All Saints site.
Prof John Brooks, Vice-Chancellor of MMU, said it was a `unique opportunity', with a major focus on regeneration for the whole area.
MMU and the council have contacted thousands of residents and businesses in the area about the plans and will also launch a public consultation.
Council leader Sir Richard Leese said: "This substantial investment in the area, and commitment to its continuing regeneration, is particularly welcome given the recession.
"Together with the rest of the investment in and around the `universities corridor', this will add enormously to Manchester's reputation.
"This new campus will be a world-class development benefiting Hulme, neighbouring areas and the city as a whole.
"It will bring not just new jobs, but also improved educational and community facilities.
"I'm particularly pleased to see environmental sustainability at the heart of its design." Tweet

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At Long Last they are Building on this Land, it looks Tatty everytime I jog Past..
I Think Sir Richard Leese is going to have another Sit in on this Particular Field, the people around that part of Hulme demonstrated before about new buildings on this land. It will create jobs in Hulme, It would not surprise me if the Hulme camp are already camped out.
These are the same followers that caused Chaos at the Airport last year, they Don’t want jobs in Hulme just Allotments to grow stuff.
"MMU and the council have contacted thousands of residents and businesses in the area about the plans and will also launch a public consultation".
First I knew about this, was when i read this article, and checked with neighbours and friends from my estate,,,and its new news to them also. So looks like they failed to contact a large estate that sits on the back of the proposed build. I'm all for creating new jobs, training e.t.c if they actually benefit the area, and the pro's outweigh the negatives. Congestion is already a problem in Hulme, with residents not able to park their own cars outside their own homes, and also I'm concerned about litter. I know residents in Didsbury have had problems over the years with the amount of rubbish students just drop on the streets.
Personally I think Hulme is built up enough, YES the fields look tatty, but I would be open to ideas and will be attending open consultations. It will be interesting to see what happens at the public cosultation, having heard what Gerry has said.
Gerry is Right it does look Tatty, the Parking will not be a problem as most Students use Public Transport, we now can expect more takeaways in Hulme which means more litter, we won’t let anyone build till our tress are saved on this land, the council has a policy of knocking them down in the middle of the Night, we are ready for this, we need better Policing and Public Transport in Hulme now….
some of Them people who demonstrate usually talk out of their caravans, I was around there 20 years before they turned up. Some of them live in the pot smoking alternative world. They are he black sheep of the meerkat family.
what exactly is the 'greenest campus in Europe' when its got a 750 multi story car park to be built 20 yards away from a residential area (Hornchurch Court) at 8 storeys high the car park will block out all light from the lower floors of Hornchurch Court and hugely increase the amount of traffic in the area- not very green is it.
'green' is just being used as a buzz word to put a positive spin on an unpopular idea. The leaflet they sent round Hulme didn't mention the car park, must have been an oversight, eh?
It will also be built right next to a primary school/
The MMU scheme was rejected in Didsbury for all these reasons so how can they justify dumping it on Hulme.
and as for the local jobs- do they honestly think Hulme people will fall that tired old line and that people in Hulme would be happy picking up the students litter?
It's very sad that MMU no longer have the funds to go ahead full-scale with Birley Fields (Hulme Campus).