The Parkwood Centre is currently housed in an old school building, but will be completely modernised with £452,000 from the government's Youth Task Force fund.
The new facility, which will be managed by the council's integrated youth support service, will include an outdoor games area, a music studio, cafe, IT suite and outside youth shelter.
The funding will also cover some staff costs for two years, so the centre will be able to run specialist programmes for young people.
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