The current community centre will be transformed into a state-of-the-art facility with media suite, cafe and activity area after receiving a grant from the Department for Children, Schools and Families.
Councillor Don Clapham, cabinet member for children's services, said: "We get told time and time again that young people need more activities to keep them occupied and I'm delighted that so many projects are under way to make this possible."
Young people and community groups that use the building have been involved in drawing up the plans.
When the redevelopment is complete, young people will have access to a range of services including youth workers and Connexions personal advisers, as well as specialist sexual health, drug and alcohol education professionals.
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