The oratory will be the first to be established in England in over 20 years.
A group of five priests, led by Fr Ray Matus, will move from the Holy Name Church on Oxford Road to St Chad's in Cheetham Hill, where the oratory will be established from the beginning of December 2012.
The Jesuits, who own the Holy Name Church, will return to and run the vacated site, which will also become the chaplaincy for the University of Manchester.
The oratory community moved to the Holy Name Church when it was threatened with closure in 1992.
The Bishop of Salford, Terence Brain, had not previously given permission for the community to found an oratory at the church because it remained the property of the Jesuit order.