Plans for the new building next to Preston Bus Station, which were submitted in August, have now been approved by Lancashire County Council.
Once completed, the new building will be operated by OnSide Youth Zones, a national charity dedicated to providing facilities for young people to spend their leisure time.
Preston Youth Zone, which has established itself as a charity, will contribute £1m to the construction costs, while Lancashire County Council will invest the remaining £5m.
Jennifer Mein, leader of Lancashire County Council, said: "We're delighted that we've got approval for this exciting project, which will provide a major new space for young people.
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