Manukau and Onehunga have been approved as top priorities for Auckland Council's new development agency.

Councillors have given the green light to Panuku Development Auckland's plans to regenerate the town centres.

MORE: Click here for a map of the development

The agency hopes to work with the Government to attract more affordable housing developments in Manukau, near employers.

It will also purchase the Onehunga Port site, where it will invite developers to build high-quality mixed-style housing.

The agency is working on the development of 17 other sites around the region.