Under the proposals, 1.4 million tonnes of waste would be turned it into solid recovered fuel for use in the plant at the Ineos Chlor petrochemical plant in Runcorn.
Transport proposals to move the fuel by rail have already been agreed.
But contract closure has been delayed by the Governments introductions of financial incentives for renewable energy solutions. June had been the intended deadline but the GMWDA is reconsidering it to allow time to secure Government funding.
GMWDA chairman and councillor Neil Swannick said: We recognise that the Government is introducing new financial incentives on renewable energy and we are keen to see some of those benefits flow to Greater Manchester taxpayers.
The authority aims to stop the annual growth of household waste, increase recycling to 50%, recover value from other materials (partly through the use of anaerobic digestion) and reduce landfill from 65% to 15%.
With a planned £320 million infrastructure investment, the GMWDA and preferred bidder Laing are working on local consultations for the facilities. Depending on the outcome material that cannot be recycled, which makes up 600,000 tonnes, could go to five new mechanical and biological treatment and anaerobic digestion plants in Salford, north and south Manchester, Oldham and Stockport.
About 275,000 tonnes of stabilised fuel could be produced by these plants for use at the planned CHP facility. Steam and electric power created could be an alternative to imported fossil fuels.
Swannick added: We have seen a succession of Government announcements about action on climate change, security of energy supply and more sustainable waste solutions. I am pleased that locally we are able to quickly give those good intentions a practical edge.
We are very keen to see the new facilities in place as quickly as possible.