The £4.8 million project will see Toxteth Sports Centre completely rebuilt with a new sports hall and fitness suite together with a climbing wall, multi activity room and dance/drama studio.
It will be funded by a £2.3 million grant from the lottery's 'Myplace' scheme, together with £500,000 from the city council.
In addition, Merseyside Fire and Rescue Service are spending £2 million relocating Toxteth Community Fire Station to the Upper Hill Street site from its present location on Upper Park Street.
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The campus will be known as 'Toxteth Firefit', and builds upon the successful partnership between the city council and Merseyside Fire and Rescue Service which has seen fitness equipment installed in some fire stations for use by local residents.
Councillor Ann O'Byrne, cabinet member for the youth service, said: "This is an exciting and innovative project which will create top quality leisure and youth facilities as well as putting Merseyside Fire and Rescue Service at the heart of the local community.
"The existing Sports Centre is looking tired and in need of major investment and this scheme will breathe new life into the whole site."
A planning application is due to be submitted later this year with work expected to start in June ready for completion in summer 2012.
(CD/GK)
