Manchester City Council is expected to more than double its contribution to delivering a new arts venue after the cost of project rose by £20m.
The budget for delivering The Factory - one of the world's largest purpose-built cultural buildings - has now risen to £130.62m.
A report has suggested that the council should increase its contribution to the project's capital budget to £40.57m from £18.97m.
The council said the increase would be funded by the sale of council-owned land and would not impact on any other council budgets.
Council leader, Sir Richard Leese, said: ‘There is nothing like The Factory anywhere in Europe - let alone the UK - and its game-changing impact for Manchester and the north of England cannot be overstated.
‘Compromising on The Factory's quality and ambition would have undermined its uniqueness, its purpose and the benefits it will bring.'
Sir Richard added that The Factory would create around 1,500 jobs and boost the city's economy by £1.1bn in the first 10 years alone.
