The borough will be one of five areas to conduct one after millions of pounds of support was revealed by Home Secretary Yvette Cooper.
Further details of how it will work will be set out by Downing Street after discussions with the authority.
But each will be advised by Tom Crowther KC, who led the Telford grooming gang inquiry.
And a Downing Street spokesperson said: “Our approach has always been led by victims who’ve told us loud and clear they finally want action after years of delay, and as we’ve repeatedly said, our focus is on action now, having listened to victims.”
As well as that, a ‘rapid audit’ – set to take just three months – of the ‘current scale and nature of gang-based exploitation across the country’ will be held.
It will look at further evidence including ethnicity data and demographics of gangs involved and their victims, including “cultural and societal drivers” for this type of offending.
And leader of Oldham Council, Councillor Arooj Shah, believes it is leading the way for the rest of the country.
She said: “We welcome this announcement and indeed any action that the government takes to establish genuinely survivor-led inquiries into historical sexual abuse.
“Survivors must be at the heart of any inquiry into these horrendous failings. Oldham’s survivors can be confident that by involving someone of the stature of Tom Crowther KC they will have a voice and a stake in our inquiry.
“As we work with government on the details of this plan, we will also make sure that survivors are involved every step of the way.
“I’m proud that Oldham will help shape future survivor-led inquiries across the country. It is a small chink of light and hope from this dark era of our borough and our country.
“I am also glad that the government is asking Baroness Casey to look at the drivers of this specific type of abuse as part of her review.
“Child sexual abuse is perpetrated by people of all races and religions and inflicted on people of all races and religions.
“But that doesn’t mean we shouldn’t ask questions about any drivers of this very specific type of offending.
“We need to do more to understand why this particular pattern of abuse is more prevalent among some groups of men.
“That’s not racism – it’s common sense.
“It’s not religion or race that defines these crimes. It’s the crimes that define these men.
“There is no corner in any part of our society for these people – the only place they belong is in prison after facing the full force of justice.”
Oldham has found itself at the centre of debate into the issue, with even Elon Musk having his say.
Councillors have repeatedly called for an inquiry into claims that swept the town.
And in July 2023, a motion put forward by Cllr Shah said there were ‘unacceptable systemic failures to provide support and justice to victims and survivors, and to hold offenders to account for the abuse they carried out.’
In 2017, Mayor of Greater Manchester Andy Burnham commissioned an independent review into child sex abuse in both Manchester and Rochdale.
Two years later, Oldham Council asked the review team to look into how agencies dealt with reports of abuse between 2011 and 2014 after allegations of a cover up over what they knew about abuse in children’s care homes, shisha bars and by taxi drivers.
That found they had failed to protect some children from grooming and sexual exploitation but found no evidence of ‘widespread abuse’ or a cover-up.
Leader of the Liberal Democrats in Oldham, Cllr Howard Sykes added: “I am pleased that the government has seen some sense and is now looking more realistically at a wider review of the situation in Oldham.
“Proof of how good this will be is in the delivery. There is a lot of bridge building to be done to show that this investigation will be independent, transparent and effective.
“They will need to ensure that survivors, that people from across Oldham, and people from across the political spectrum are consulted and kept informed throughout the process.”
Saddleworth West and Lees Lib Dem Councillor Sam Al-Hamdani commented: “We have had too many inquiries that have delivered too little. People have been put through the trauma of investigations, of providing testimonies, to too little effect.
“They need to know that things can change and implementing the IICSA recommendations is a critical first step in that.
“Oldham deserves better than has happened in the past, and we will continue to campaign for justice for the survivors, to confront the traumas of the town’s past, and to build a better future, alongside the many others who have campaigned for these changes.”