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The Home Office grant will be used to help integrate refugees in areas such as Moston where there has been an influx of asylum seekers by improving access to employment, education, training, housing and health services.

It will pay for a project manager, settlement development worker and administration support.

They will coordinate a three pronged action plan aimed at maximising employment training and volunteering opportunities for refugees, helping permanent settlement in Manchester and providing health care.

The project aims to break down language barriers and obstacles such as a lack of familiarity with the area and lack of knowledge of available services that block people's access to support.

Staff at key agencies in the city will be trained and groups will be encouraged to work more closely together. Further funding of more than ?140,000 will be available if the project is successful.

Experience of smaller scale settlement work with refugees including housing Kosovans in Blackley has helped planning the project and securing the funding.

Commenting on the funding injection, Coun Marilyn Taylor, lead council spokesperson on asylum seekers, said: "Many of these people have undergone terrible ordeals in some of the most troubled parts of the world and by setting up this project we can play a significant role in helping them settle and start afresh.

"This city has a proud cosmopolitan tradition of welcoming people from other cultures. And this will further promote that tradition by helping these people find their feet and integrating them into the community.

"We have already shown constructive ways of integrating Kosovars, Vietnamese and Somali groups with local residents. Now we can build on that good work through increased cooperation with other agencies."