The decision gives Shepherd Construction the green light to start on the 520-bed high rise, which is expected to cost around £45m and be the second tallest building in Manchester after the Beetham Tower.
The project team on the Great Marlborough Scheme includes Canmoor Projects, Shepherd and regional building consultants Edmund Kirby, WSP and Brentwood Design Group.
When finished the building will accommodate students in a mix of self-contained studio apartments and cluster-style communal accommodation.
Edward Cade, chief executive of Student Castle, said: “We are delighted to have been awarded planning permission for this landmark scheme in Manchester.
“As a new, expert developer within the sector we are pleased to have this opportunity to make a positive contribution to the regional economy and higher education sector in one of the UK’s most vibrant cities.”
Student Castle said it is also currently targeting London, Bath, Birmingham, Brighton, Bristol, Cambridge, Durham, Edinburgh, Exeter, Leeds, Newcastle, Oxford and York for student accommodation developments.
Hodder + Partners are architects and lead consultants for the development.
The development is due for completion in 2012.