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Anuj Bidve, 23, was shot in the head at point-blank range as he walked with friends near their hotel in the inner-city Ordsall district of the city, in the early hours of December 26.
The murder of the Indian student is being treated by detectives at Greater Manchester Police (GMP) as a "hate crime" which may have been racially motivated.
On Friday, senior officers from the force announced the cash reward and said they hoped it would help get the killer gunman caught as soon as possible.
Detective Chief Supt Mary Doyle, leading the murder inquiry, said: "It is an extremely unusual, savage and motiveless attack, an absolutely horrific crime, which is why we are taking the step of issuing it (the reward) a bit earlier than we normally would."
According to the Press Association, Police have not said whether investigators have so far met with a wall of silence from the local community in Ordsall, one of the most deprived inner-city districts of Greater Manchester.
Police said a 16-year-old boy and two 17-year-old boys arrested over the murder have been released on bail pending further inquiries. Two men, aged 19 and 20, remain in custody.
Earlier, UK police apologised after it emerged that the victim's father learned of his son's murder from Facebook.
Subhash Bidve read a post on the social networking site before officers were able to get in touch with him in India to deliver the news about his son.
Assistant chief constable Dawn Copley said: "A family liaison officer was quickly put in place after Anuj's murder who made exhaustive inquiries to try and inform the family and deliver the awful news personally. Unfortunately, as the officer was attempting to contact the family through the right channels, a post was put on Facebook.
"Since then, we have had two family liaison officers in regular contact with Anuj's immediate family and those who speak on his behalf to keep them updated about every step of the progress of the investigation. Greater Manchester Police
is also working very hard to bring the family over to Manchester as soon as possible."
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Countries like Britain and Australia are racist countries where people of colour have no security. I don't understand why Indian students go to these countries especially when Indian universities like the IITs and IIMs are far better than most foreign universities. British culture is sh!tt - teens fool around like monkeys thereby spreading STDs, couples have babies without even marrying, and if they do marry dads leave their children when they are infants, babies grow up without the moral and emotional support of their parents, which easily leads them to drugs, alcohol and violence, and since guns are freely available without even requiring a license, they end up becoming gangsters and add to the filth that is the British society. Indians are better off getting their education in their own country.
May god bless his soul in peace, I don't know what is going on with teenagers why the are showing such a brutal behavior. I request to their seniors kindly don't take their childhood from them. Don't teach them such a shameful things. Finaly they are suffering and you will be looser.