The 200-acre site around Manchester City Football Club’s Eastlands home is set for a £1bn regeneration scheme.
The plans are likely to see the 48,000-capacity stadium extended to 60,000, and a training facility built nearby on disused.
Leisure facilities including shops and a hotel are also thought to be part of the scheme.
City has signed an agreement with the city council and regeneration body New East Manchester to develop the project.
The first phase of the development will involve a market place-style fan zone, on Joe Mercer Way, the current approach to the stadium.
Further plans are yet to be decided but the proposals tie in with the council's hope to create the "nationally-significant destination" earmarked for the area since the abandonment of the super-casino.
Sir Richard Leese, council leader, said the combined strength of the club and council would act as an "engine of economic growth" in the area.
"From the securing of the Metrolink tram system to the building of world class sporting facilities in and around Sport City, there has already been real vision in creating a sustainable future for east Manchester. "
A Metrolink stop is set to be incorporated at the Sport City site - to be called Central Park - as part of the current expansion of the tram network.
Work on a £19m national BMX centre at the Sport City site is currently underway.