Tameside Council's executive cabinet is proposing the sale of the Lock Keepers and former library sites in Droylsden as a single development opportunity to deliver new homes in the area.
The sites will be sold directly to developer Watkin Jones, which already owns the access to the sites as well as two pieces of adjacent land.
Tameside Council secured £800,000 Brownfield Homes Funding to assist with the redevelopment and relocation of the library to Guardsman Tony Downes House, as well as to fund the demolition of the former library building.
The two sites have been packaged together to meet the requirements of the Brownfield Homes Fund.
Cllr Ged Cooney, Tameside executive member for Housing, Planning and Employment, said: "This site can deliver a high quality housing scheme that will meet identified local needs, help to regenerate a long-term vacant site and act as a catalyst for regeneration across the wider town centre of Droylsden. The sale of the two sites together is the practical approach and ensures the best future use of the location.
"Watkin Jones has a track record of delivering successful residential developments, including Droylsden Marina, and we welcome the opportunity to partner with them again and build further new homes."
Peter Quinn, investment and partnerships director at Watkin Jones, said: "This is a very exciting opportunity for us to continue our work to bring new high-quality homes to Droylsden. We are still very early in the process but look forward to working closely with the council and the local community to create a thriving neighbourhood on this vacant brownfield site."