The Manchester Cancer Research Centre, in Withington, will "test potential new therapies and different ways of diagnosing cancer earlier".
Director Prof Nic Jones said 150 scientists at the building would work to develop personalised cancer treatments.
It is hoped this would lead to improved diagnosis, more effective treatments and improved survival rates.
Prof Jones said the placement of the centre, opposite The Christie cancer specialist hospital, was "crucial" to enable scientists and clinicians to work closely together.
"What's learned in clinical trials comes straight back to the laboratory, creating a circle between the laboratory and the clinic and that's key in making real progress," he said.
"We will know more about an individual patient's disease characteristics which will help to lead directly to better treatments and outcomes."
He said the facility was "part of the ambition we have to make Manchester one of the top cancer centres in the world."
The centre was jointly funded by Cancer Research UK, the University of Manchester and The Christie NHS Foundation Trust with their More Tomorrows campaign.
Cancer Research UK said 13,200 people are diagnosed with the disease every year in Greater Manchester.
A £28.5m ($44.5m) cancer research centre has opened.