The centre - to be based at the city council's alternative education centre on Montague Road in Old Swan - will include a bistro, sports facilities and a dance and drama space.

It forms part of a wider refurbishment of the centre, which takes in excluded secondary school pupils for a short period of time before they return to mainstream education.

Local Lib Dem Councillor Keith Turner said: "The money being invested will improve the centre and also create a top quality facility for all young people from the local area.

"It will be open after school, at weekends and during the holidays to give everyone the chance to use it.

"Young people are working very closely with the architects on the design to make sure it is the type of facility that they and their friends will use.

"They will be able to get together in a safe place where they can meet their mates, enjoy themselves and learn new skills, rather than hanging around on the streets with nothing to do."

The improvement plan for the centre was drawn up following a poor OFSTED report last year, which criticised the site for not serving hot food, as well as a lack of outdoor facilities.

It is hoped that groups and organisations for older people will use the centre, breaking down barriers between different generations.

Cookery lessons will also be on the menu to help young people eat healthily.

And special acoustic fencing will be fitted to the outdoor area so people living around the youth centre are not disturbed by noise.

Money for the scheme is coming jointly from the budget for the alternative education centre and the Youth Capital Fund, which is aimed at creating improved facilities for young people.

Consultation has already taken place with a wide variety of young people and ward councillors.

Work is expected to start this summer, with completion early in 2010.