The government has said a further £4m will be provided as part of its "Town Deal", taking the total investment in the town to £88m.
The extra money will allow North East Lincolnshire Council to work with national charity OnSide to develop a youth zone in Grimsby town centre.
Cabinet Office minister Jake Berry, who has responsibility for the government's "Northern Powerhouse" initiative, said: "The investment we're making through the UK's first Town Deal will help drive forward regeneration, create new opportunities for residents, young and old, and ensure the future for Grimsby is a bright and prosperous one.
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