Rochdale Borough Council has agreed a deal to acquire the Grade II listed Warwick Mill in Middleton as part of plans to regenerate the area.
The council is also hoping to acquire neighbouring London House under the terms of the deal.
Warwick Mill was built in 1907 and stopped operating as a cotton mill in 1965. The council said it has been vacant for at least a decade and its condition has deteriorated.
The council has worked with the private sector over the past decade to find a new use for the building, but previous plans did not go ahead.
Its decision to pursue the purchase follows the Our Town, Our Future engagement exercise carried out by community organisation Middleton Co-operating.
More than 2,000 residents took part, with around a third saying they wanted to see Warwick Mill brought back into use.
The engagement forms part of wider work to establish a Mayoral Development Corporation for Middleton, which will be co-chaired by Middleton-born actor and comedian Steve Coogan and Co-operatives UK chief executive Rose Marley.
Councillor Neil Emmott, leader of Rochdale Borough Council, said: “Warwick Mill is an important landmark in Middleton and serves as a striking visual reminder of the area’s rich history as a major player in the global cotton trade. It also represents a huge regeneration opportunity and a chance to really revitalise this key part of the town centre.
“Middleton’s MDC will be based on cooperative values, with the community, businesses, voluntary sector, council and GMCA all working together to bring about positive changes. The desire to bring Warwick Mill back into use came through very clearly in the engagement exercise and we’ve responded to this.”
The acquisition was announced at an event at Middleton Arena which provided an update on the consultation and formation of the development corporation.
Steve Coogan, Rose Marley, Greater Manchester mayor Bev Craig and Councillor Emmott attended the event.
Marley said: “More than 2,000 people gave their time to Our Town, Our Future – the biggest conversation Middleton has ever had about its own future. What came back was clear: people want to see regeneration done with Middleton, not to Middleton.
“The Middleton Co-operative Mayoral Development Corporation will help to carry that mandate forward: into the town's housing, transport, green spaces and public buildings – Warwick Mill among them – and into every decision still to be made.”
A feasibility study is under way to consider possible future uses for Warwick Mill, with the council saying the community will be consulted on the final plans.
The council plans to carry out urgent repairs, improve security and tidy the land around the building within the next few months.
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