He said it would change the tone of voice of the BBC as an organisation.
"It will open doors to new talent and new perspectives. It will win back trust in parts of the country, which can currently feel quite alienated from the BBC," Thompson said.
Manchester is to get a state-of-the-art centre, populated by services relevant in decades to come, with new career and creative opportunities.
The BBC said that the move of 1,800 people represented the move of real money and decision-making power, and that it would redress lower spend per head in the North than in London and develop a thriving creative community.
The departments moving are: children's TV and radio, including two national children's networks, CBBC and CBeebies; BBC Sport; Five Live and Five Live Sports Extra; new media and R&D; formal learning, including the digital curriculum.
The BBC said it would be creating a media enterprise zone in partnership with independent producers body PACT, regional development bodies and other broadcasters.
The value of commissioning moving to Manchester was put at £275m by the BBC and the value of network production moving at £225m.
The BBC said that the move was fully supported by governors and that they will give final sign-off when the financial picture for the next charter period, including the licence fee, is clear.
The BBC said it was likely to be five years before any major moves take place and that Peter Salmon, director of sport, will lead the Manchester initiative.
Besides Manchester, other moves planned will see network commissions from the nations increase by 50% to 17% of overall network commissions.
TV drama made outside London to increase from 30% to 50% during the next charter period.
The BBC also said it will appoint a commissioner for daytime in Birmingham, for comedy and entertainment in Glasgow and part of factual commissioning will be based in Bristol.
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