The second phase of the development, designed by Broadway Malyan, includes up to 350 canal-side apartments.
Council planning officers have recommended approval of the first phase of 97 apartments. A decision was expected at yesterday's planning committee meeting.
Work on the first phase is expected to start this year and the first residents should be able to move in in the middle of next year.
SportCity has grown up around the Commonwealth Games stadium, which is now to be used as the Manchester City football ground.
New East Manchester was set up in 1999 with the aim of doubling the population of east Manchester to 60,000. The area covers 1100 ha and suffered a 13% population loss in the 1990s, largely because of the collapse of manufacturing industry in the area.