The event will offer specially commissioned music and art, with the festival planned to become biennial after 2007.
London-based The Idea Generation will promote a 'taster festival' in November, featuring acts such as Gorillaz. Its campaign will target music, broadsheet, tabloid and broadcast media in the tourism markets of Europe, Japan, China, Australia and the US. Radio and print competitions are also being planned.
'The festival acknowledges Manchester's pivotal role in music, culture and the arts,' said Idea Generation music and entertainment
director Anita Mackie.
The festival is partly designed to build on the legacy of the 2002 Commonwealth Games, Mackie added.
Two further pre-festival events will be held next year.
Around 160,000 visitors are expected for the 2007 festival, but the council hopes to attract 270,000 in subsequent years.
The authority claims that the festival will help boost the local economy by as much as £30m.
Mackie reports to MIF communications director Christine Cort and head of marketing Helen Palmer.
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