The 15th century Grade II listed building is being transformed into 11 new apartments above a ground floor restaurant premises.
The scheme will be delivered over the next 12 months through a partnership between Stockport Council and Laurus Homes.
Larry Gold, MD Developer & Deputy CEO of Trafford Housing Trust said: "As a property developer who is also part of a major housing association Trafford Housing Trust, Laurus Homes fully embraces Stockport Council's collaborative approach.
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"We know that for sensitive and complex schemes like this to be genuinely sustainable, and add real value to the local community, they need to be driven by a partnership where all parties share the same vision.
"Our close working relationship with Stockport Council on projects like the White Lion, and the wider Underbanks regeneration, demonstrates this approach in action."
Caroline Simpson, Corporate Director for Place at Stockport Council, said: "I'm delighted that work breathing life back into The White Lion has begun. Injecting new life back into historic buildings is vital to ensuring Stockport is a vibrant and popular place to live, work, play and connect 24/7."
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