The Council is also currently exploring the market to find a suitable partner to deliver free Wi-Fi in public spaces across the city. It is hoped to launch the first phase - in the city centre - before Christmas, with other parts of the city to follow.
The Manchester Digital City plans, to be funded through today's announcement, will complement a Greater Manchester-wide strategy to roll out ultrafast broadband across the city region.
It aims to make ultrafast broadband available to 228,000 premises in total - with the aspiration that the latest government funding will help bring it to 27,700 residents and 6,200 businesses by 2015.
Additional funding will also be available to support small and medium-sized businesses which require even faster connectivity, including providing suport and advice to help them maximise the benefits.
And high-speed wireless connections will be installed across key public areas and along major transport corridors, making it easier than ever for people in the city to get online quickly.
Source: Manchester Confidential