Detailed geological evaluations will now be undertaken by GT Energy in a bid to secure a supply of cheap and renewable heat to homes and businesses in the city.
Padraig Hanly, Managing Director of GT Energy, said: “We will be working with our contractor Erdwerk, which is highly experienced in deep geothermal development in Germany.
“From here, we expect to move from planning permission to a position where we will be ready to break ground on the site in spring 2015.”
GT Energy aims to start drilling in spring 2015 and generating energy in spring 2016 from the geothermal resources located approximately two miles below Manchester in the Cheshire Basin.
A network of pipes will take the heat from deep underground to city centre homes and businesses.