Plans have been approved for the first phase of a multi-million pound development to include a 150-room hotel and a five-storey office block.

The project will transform land at the junction of Great Ancoats Street and Pollard Street in Ancoats.

The hotel will be one of the French-owned Etap chain, which has more than 380 hotels across Europe.

Phase two, in the planning stages, will include a supermarket and 74 homes, including one to three-bedroom apartments and town houses.

It is estimated more than 160 jobs will be created for the office and retail elements of the development, plus scores more at the hotel.

The developer is Royal London Asset Management (RLAM).

A spokesman for the firm said: "Now that our plans have been approved, we will be pushing ahead with the site clearance and redevelopment work with a view to completing the build in the third quarter of 2011.

"We are in discussions with a number of brands about the new retail shopping space and hope to be able to announce some prospective new tenants in the coming months."

Both buildings feature modern designs said to be inspired by the mills and cotton warehouses that previously thrived in the area and the development will be powered by low-carbon technologies.