Plans had been held-up after landowners initially refused to sell their plots to the football club.
They dropped their objections in May and the Secretary of State has now granted a compulsory purchase order, allowing building to start.
BAM has won the main contract after holding off competition from Carillion, Laing O’Rourke and Bowmer & Kirkland.
Eddie Smith, chief executive of urban regeneration company New East Manchester, told the BBC: “Manchester City Football Club’s plans in east Manchester are a hugely important ingredient of the ongoing regeneration of the area, which will see not only world-class leisure and educational facilities for the community, but also jobs for local people.
“We worked with the club to help relocate existing business and sustain existing jobs and are pleased that the Secretary of State has reached a decision in the public interest which will enable this ambitious scheme to move forwards.”
Plans at the site on land next to the Etihad stadium include:
- A home for up to 400 young players who will train and study alongside senior players, with a clear development pathway to the first team
- One half size and 11 full size youth development pitches
- One half size and 4 full size first team pitches
- On site sleeping accommodation and classroom facility for 40 young players to allow them to train and study in a safe and secure environment
- A carefully planned first team building with changing rooms, gym, refectory and injury and rehab centre
- A 7,000 capacity stadium for youth matches
- Staff offices and a dedicated media centre
- A bridge linking the site to the Etihad Stadium and the rest of the Etihad Campus