The theatre is set to be created in the historic Friends Meeting House and former Post Office, close to Gallery Oldham.
Plans include a main auditorium seating more than 300 people, a 120-seat studio theatre, an education suite, and all-day café bar areas, which can also be used as additional performance spaces.
The design team include architect Feilden Clegg Bradley Studios, M&E consultant Max Fordham and structural and civil engineers Renaissance.
Cllr Arooj Shah, Leader of Oldham Council, said: “As council leader, I’ve made it one of my top priorities to push plans for our new theatre forward as I know how important it is to the people who live here and visit the town.
“Plans for the Cultural Quarter are really coming together now and just recently Cabinet gave the go-ahead for a new public space which will sit right in the ‘heart’ of the three key buildings – the Old Library, the new theatre and Oldham Library/ Gallery Oldham.”
Oldham Council has pencilled in a 2026 completion date for the project.
These plans are part of Oldham’s much wider regeneration programme, creating a thriving, greener and more sustainable town centre for the future.
Developments include restoring the Old Library, a new market, new shops and leisure opportunities, a new town centre park and around 2,000 new homes.