The Arncliffe Youth Centre could be operational from early 2021 following Bayside Council's unanimous decision to outsource its management.
There were fears for the future of the youth center after builder, Ralan was placed under voluntary administration last year.
Ralan was building the youth centre in Wardell Street in conjunction with its adjacent 318-unit development, called The Orchid, at 213 Princes Highway, Arncliffe.
But Ralan went into voluntary administration on July 30, 2019 and administrators Grant Thornton Australia Pty Ltd worked with creditors and other stakeholders as to the best way to proceed with the project.
Bayside Council's May 13 meeting Council voted to go to tender to find a suitable operator to manage the Centre.
"This is a great example of Council working with the local community to provide much-needed services," Mayor Joe Awada said.
"Community engagement with the local community and families indicated a strong need for youth and recreational services in Arncliffe and suburbs nearby."
When completed, the youth centre will accommodate a range of organised sport and informal spaces and include two indoor multi-purpose courts, one with a grandstand for up to 440 spectators, and a number of rooms to accommodate recreational activities and youth services.
As well as sporting activities, the aim of the centre is to be a learning and study space, with rooms to accommodate music and artistic pursuits.
There will be a dedicated area for the delivery of youth services including a "drop-in" chill zone, visual arts and music rooms.
There will also be offices to provide referral services such as employment, health and drug and alcohol counselling.
A multi-purpose room with a commercial kitchen will be able to cater for larger events.
Back in 2014 the then Rockdale Council entered into an agreement with Ralan for the company to build the Arncliffe Youth Centre at Wardell Street in exchange for the council transferring the development potential from its Wardell Street property - vacant land along the railway track - to the company's adjoining land at 213 Princes Highway.
The agreement saved the council about $3 million which it had set aside to build a new youth centre.