The project, named Kampus, will include hotels and leisure space, as well as a number of bars and restaurants, according to a report in the Manchester Evening News.
The district will be centred around Little David Street, a dilapidated city centre street which has been closed for several decades. Joint venture partners for the project include Capital & Centric and Henry Boot Developments.
Adam Brady of Henry Boot said: "We’re not looking to create another Northern Quarter, Spinningfields, Shoreditch or anywhere else here. Kampus will be a distinctive sub-district with its own individual vibe".
A framework and plans were submitted to Manchester council last month and the proposals are now awaiting public consultation.