As part of the seven-year agreement, the company will initially undertake preliminary field work to assess the commercial viability and the practicality of offshore electricity production.
The company will also determine other important factors such as the seabed suitability to install turbines and the tidal current strength off the Point of Ayre.
Manx Tidal Energy chairman Andrew Roy said: "The potential of this site illustrates just how large the environmental and economic opportunities are in the Isle of Man’s territorial waters, potentially making it a world leader in offshore energy production.
"The size and scale of the site could make this the largest tidal energy project in the world to date."
The survey license is a part of the government’s effort to develop tidal power within the Island’s 12-mile territorial seas, to boost the local economy and the government hopes to export some of the generated energy to the UK.
Isle of Man Infrastructure Minister Phil Gawne MHK said: "Leasing parts of our seabed to offshore tidal developers will generate substantial revenue directly to the Isle of Man Government, helping to fund public services as well as lowering our carbon footprint.
"If the surveys prove that a tidal array is viable the Department would look to agree a lease for development, subject to all the necessary approvals being in place."
The first stage of a technical process was carried out by a team comprising of members from The Isle of Man’s Department of Infrastructure, Department of Economic Development, Department of Environment, Food and Agriculture, the Attorney General’s Chambers and Manx Tidal Energy
The results are expected to lead to the installation of tidal turbines in Manx waters.
The government is also considering three additional sites off the southern end of the Manx coast to grant survey licenses, subject to regulatory approvals and an environmental impact assessment.
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