Up to 64 acres of former landfill site to the south east of Southport's town centre, known locally as Town Lane, will be transformed into a woodland after public grants of £1.78m were awarded.
The woodland is the latest under the £59m Newlands regeneration scheme led by the North West Development Agency and Forestry Commission.
The make-up of the site includes two former landfill sites, unmanaged grasslands and large sections of land that has suffered from neglect and some abuse from anti-social behavior.
The sites adjoins Southport Commerce Park and Southport General Hospital. The area's cycle tracks and walkways are also going to be enhanced bringing further access to the area and beyond.
Work on Town Lane will commence this summer with the introduction of new soils for tree planting.