Virgin Radio-owner SMG, Capital Radio and Canadian media giant Canwest are all expected to make bids for the licence, which is to be advertised by Ofcom in November.
Manchester is famed for its musical output which includes New Order, Happy Mondays, Oasis, The Stone Roses and Doves. It will be one of the most contested battles in radio with all the big players expected to put in competitive bids.
Kerrang!, the only format in the Manchester bid to be revealed, won the West Midlands FM licence last year after a competitive pitch against GWR, Scottish Media Group, Jazz FM and The Wireless Group.
It was announced this week that Emap had poached Ofcom's senior radio executive Mike Philips to head its regulatory and public affairs, signalling the company is actively seeking to grow its radio empire in the deregulated market.
The group also recently launched a bid for a new FM licence in Edinburgh with local radio group Castle FM.
Ofcom will issue a total of 30 analogue licences throughout 2004 and 2005 with Edinburgh and Belfast already advertised.
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