The property developer owned by Betfred founder Fred Done is to build a 40-storey tower at the St Michael's scheme in Manchester city centre.
Gary Neville's Relentless Group has partnered with Salboy to lead the project, which forms the second phase of the scheme.
The landmark building is expected to feature a five-star hotel with 161 beds, 181 serviced residences and a "multitude of design-led amenity and leisure spaces".
READ MORE: Click here to sign up to the BusinessLive North West newsletter
The second phase of the St Michael's scheme will also include front onto the new public square and include a fully refurbished Sir Ralph Abercromby pub.
Relentless Group added the project will see the creation of 1,800 jobs.
Supporting Relentless and Salboy in the delivery of phase two will be contractor Domis Construction, Salboy’s construction partner.
Initial works are expected to start in January 2023 and the scheme in its entirety is due to be completed in 2026.
Mr Neville said: "The Relentless team have been on this project for 15 years and we’ve never diluted our ambition on what has been an incredibly long journey to build this complex and challenging project.
"Thank you so much to the Salboy team, to Fred and Simon in particular and for all their support over the last few months.
"I would also like to thank Manchester City Council and the Reform Synagogue for the faith they’ve shown over the years. It’s now time to deliver.
"Our aim with St Michael’s has always been to create a world class destination in our city that celebrates our local passion, spirit and hospitality that delivers to a 5 star international standard."
Simon Ismail, managing director of Salboy, added: "Gary and his team have worked incredibly hard to drive the St Michael's project forward over the last few years and we're excited to be on board to help them deliver this hugely ambitious and long-awaited scheme.
"We would like to thank Relentless for giving us an opportunity to be involved in this scheme. St Michael's is already raising expectations for what Manchester has to offer.
"Now it's time for Salboy, Domis and Relentless to work together to make this development a reality and deliver a destination at the sorts of international standards that all of Manchester can be proud of."
Anthony Kilbride of Relentless said: "With the initial phase of the development now well underway it allowed us to focus on finding our delivery partner for the final phase of the project and to complete the masterplan we set out to achieve for St Michael’s.
"We are delighted to enter into this partnership with the Salboy team, agreements were concluded quickly, with a clear aligned vision and ambition to deliver what we consider to be step change in development for this city.
"With KKR & Salboy as our delivery partners our focus is on the execution phase of St Michael’s and the future announcements to make as we progress further."
Danny Savage, trustee of the Manchester Reform Synagogue, added: "The trustees of the synagogue are delighted that their 15 year partnership with Relentless has successfully come to fruition.
"The development has overcome many challenges over the years and we have found Gary and the Relentless team to be both supportive and enthusiastic throughout that time.
"With the proceeds of the synagogue sale, the trustees will now be able to source a more suitable base in the city centre that will cater for the needs of our congregation in 2022 and beyond."
Joanne Roney, chief executive of Manchester City Council, said: "This is an ambitious development in an area of the city with huge potential.
"The significant levels of investment, partnership working and the high-quality design that will bring in new quality mix of uses and will further help our recovery from the pandemic, while demonstrating our ability to deliver transformational regeneration projects in Manchester."
