Pennine Care NHS Foundation Trust has been given the go ahead to build a new facility for mental health patients at Fairfield General Hospital in Bury.
Pennine Care is funding the £178,000 development along with a £100,000 grant from the Government's Department of Health through its King's fund.
Keith Walker, specialist services director at Pennine Care NHS Foundation Trust, said: "Our patients told us that they wanted something different and so rather than developing a traditional clinical building, we aimed to create a place that would really stimulate the young people who use it. The woodland setting around the site provided us with the inspiration to develop an urban treehouse which supports the therapeutic, educational and leisure needs of our patients.
"We're really proud of the project and believe that it will make a big difference to enhancing the treatment of young people for years to come."
Pennine Care said the urban lodge will provide children aged between 13 and 18 with a safe and stimulating environment in which to play, relax and learn.
Pennine Care has worked with architecture students from Manchester University to come up with ideas to develop the centre.
Sustainable design and construction company Blue Forest UK is leading on the design and build. The firm is using resources in keeping with the surrounding woodland area.