Oldham Coliseum Theatre will be moving to new state of the art premises on Union Street in Oldham.
It is hoped the work will be completed in 2020.
A grant o £7.1m has been approved by the Arts Council England. The new theatre will have a 550 seat Main Auditorium and a 175 seat flexible studio.
It will be part of Oldham.s Cultural Quarter and will sit alongside the Heritage and Arts Centre, Gallery Oldham, Library and Lifelong Learning Centre.