Councillor Gavin White, executive member for housing and development, said the site was currently a well-known fly-tipping hotspot.
Council Leader Bev Craig said the National Association of Lidos had welcomed the plans, the Local Democracy Reporting Service said.
Speaking at a council meeting on Wednesday, Craig said the site was currently home to fewer than 100 people and “does not have too much going on”.
The Galleon in East Didsbury and Alexandra Park’s lido both closed in the 1980s.
The Holt Town redevelopment, which would also include the building of 4,500 homes, “will take many years to complete”, the council said.
