The grant funding will go towards freeing up three key sites in the town centre for new, sustainable, homes of different types and sizes. The Civic Centre and Queen Elizabeth Hall site has been awarded £1,390,035, the former Leisure Centre site, £1,390,409 and the former Magistrates Court, £370,782.
The money will be used to prepare the three sites for the construction of the new homes, including site remediation and preparatory works.
Money from the Brownfield Land Release Fund is part of the One Public Estate (OPE) Programme - a £180m fund delivered over three years to help councils across England free up council-owned land for new homes.
Cllr Arooj Shah, Leader of Oldham Council, said: "This is fantastic news and goes to show that the Government has faith in our plans for our all-new town centre.
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"The money will be vital to help free up the land at these sites for new homes right in the heart of Oldham - alongside a new park, cleaner and greener public spaces, and new developments such as the new theatre, new market and new-look Spindles centre.
"We want to create a better town centre, not just to benefit the people who live here now, but for future generations – creating new communities, leisure opportunities and affordable housing for families.
"Our ambitious plans will see around 2,000 new homes built and I'm delighted to be working with our partners Muse, led by Oldhamer Phil Mayall, on delivering them.
"These new homes will bring more people into the town, supporting local businesses and providing more opportunities for people to shop, eat, drink and spend their free time.
"I'm excited to move the plans forward - and soon residents will start to see shovels in the ground."
Oldham Council's partnership with Muse will see around 2,000 new homes, of all types and sizes, built on pieces of land including the Civic Centre and former leisure centre sites, with a new town centre park at the heart of it all.
The new homes are the biggest piece of the ongoing regeneration of Oldham town centre.
Work is well underway on the programme, including the revamp of Spindles Shopping Centre which will include offices for both council staff and businesses, a new home for Tommyfield Market and events space; a new theatre and public space and a restored Old Library with cultural, civic and community spaces.
