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Manchester won a national competition to host Britain's first supercasino, which would have created 3,000 jobs.
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Council leader Sir Richard Leese said: "This site offers the opportunity to develop a visitor attraction that will be both nationally and internationally significant. It is a prime location just one and a half miles east of the city centre.
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"It is also important that the proposals show the intention to deliver the highest standards . . . to create a high quality environment that will complement and enhance existing facilities."
delivering more than 200,000 readers in Greater Manchester.
It could raise more than 500m for the city's economy in its first 10 years.
But the idea was defeated in the House of Lords and Gordon Brown dropped the idea after taking over at Number 10.
The council has said only a huge leisure facility could bring as many jobs as the casino and rejected other options including a retail development, homes, industrial uses, offices and a business park.
Sportcity is also home to the Velodrome and officials from Manchester Leisure and New East Manchester are currently developing proposals for a major indoor BMX facility.
Greater Manchester Business Week is the region's number one provider of business news andfeatures, targeting a bespoke business audience with 12,687 copies every Thursday.
300m plan for Sportcity
Eddie Smith, New East Manchester's chief executive, said: "This piece of land is at the heart of one of the most important regeneration areas in Britain.
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"This is a unique opportunity to create a world class tourist attraction. We look forward to receiving some very ambitious and creative proposals."
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Manchester council and regeneration body New East Manchester are inviting proposals from developers, but have stressed the need for the 'highest standards' of architecture and design.
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A ministerial task force was charged with coming up with an alternative scheme.
The Abu Dhabi Group's 200m takeover has made City officially the richest football club in the world. In charge is Sheikh Mansour Bin Zayed Al Nahyan, whose family is worth an estimated 560bn.
are rumoured to be interested in the 38 acre site.
If the development goes ahead, Sportcity will become one of the biggest urban visitor destinations in Europe.
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