The town-centre facility aims to host 200 young people each evening after school and at weekends once it opens in spring 2018.
Led by charity OnSide Youth Zones, it will operate in a similar way to existing youth zones in Wigan, Carlisle and Blackburn.
Youth workers will offer up to 20 activities a day such as football, cricket, dance, drama, employability skills and mentoring programmes.
Chorley's youth zone will employ 50 full-time staff who will be supported by about 100 volunteers. Young people will pay an annual £5 membership, and 50p for every visit.
Chorley Council and Lancashire County Council are part-funding the £4.8m facility, giving a combined £1.9m.
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