Residents had been campaigning for two years to make the buildings safe after unsafe cladding was found following Grenfell tragedy safety check.
The contractor agreed to fund the project along with freeholder Pemberstone.
At the two Green Quarter blocks, Vallea Court and Cypress Place, each resident was originally told they would need to pay thousands to replace the cladding.
Since then the government has called on freeholders and developers to do the right thing and fund retrofitting.
Manchester Liberal Democrat Leader, John Leech, who had campaigned for Manchester City Council to strip Lendlease of its separate £330m town Hall upgrade job as a result of the row over who would pay for recladding welcomed the news.
He said: “This is a huge, huge win for local people and I’m delighted that Lendlease and Pemberstone have finally taken responsibility and will pay for the new cladding. I really hope this sets a precedent across the country.”
A Lendlease spokesperson said: “We can confirm residents will not need to pay for the costs of replacement cladding. The process, which has involved multiple companies, has taken longer than anyone would have liked, and we regret how unsettling it has been for residents.
“We did not design, build or currently own the Vallea Court and Cypress Place buildings within the Green Quarter development and have worked with, and through others, to reach this outcome.”