The club wants to provide state of the art facilities that will create new investment in the area and opportunities for local people in sports participation and physical activity, youth inclusion, education, health, employment and a range of other services.
The site for the development is the existing Ten Acres Lane sports centre, which is owned by Manchester City Council.
FC United, New East Manchester and Manchester City Council have been working closely over the past two years to develop the plans and consultation will now progress with local residents, community groups and FC United members who own the club.
FC United is working to secure the finance for the £3.5m development, which will include a public appeal for donations, a Community Shares issue and grant funding.
Club General Manager Andy Walsh said: "The announcement will be a big boost to the club and we also want the development to be of benefit to Newton Heath, the discussions with the council have been very positive and we are grateful for their support. The significance of this location is historical while it will also showcase a new model of facility development, based on football supporter ownership and community involvement."
Manchester City Council's Executive Member for Culture and Leisure, Cllr Mike Amesbury, said: "We have been supportive of this development to date and we are pleased to now take it to the next stage. While there is a way to go yet we feel that this will have significant local community benefits and bring an iconic supporter-owned club to Manchester."