The regeneration of Stockbridge Village centre has been given formal approval by Knowsley Council.
The council's planning committee agreed unanimously to approve the £25m proposals that includes the creation of a new swimming pool, gym and leisure facilities, learning resource centre, police access point, primary school, children's centre and family centre, multi-use games area and a supermarket.
Cllr Dave Lonergan, Knowsley Council's cabinet member for regeneration, economy and skills, said: "This is fantastic news and I am delighted that these ambitious plans have received the stamp of approval by the planning committee.
"The redevelopment of Stockbridge Village has long since been a major priority for the council and we have worked extremely hard with our partners to bring to life the aspirations of the community."
Work has already begun to clear the site and prepare the area for redevelopment. Building work to construct the new facilities will commence later this month with the new primary school due to be the first completed part of the scheme in autumn 2011.
Nick Kavanagh, Knowsley Council's executive director for regeneration, economy and skills, added: "We worked long and hard to find out what local people felt they needed and the planning approval means we can now realise a long held ambition to make a difference here."
Knowsley Council selected its preferred construction partner Morgan Sindall to deliver project.
Barry Roberts, Morgan Sindall area director, said: "These changes will have a tremendous impact on the local economy during the construction process and upon completion by generating local job opportunities.
"We have considerable experience of delivering complex schemes like this and we understand the logistics involved in completing multiple phases on time and to the highest standard."
The council said the regeneration proposals complement other development projects in the area, including an extension to the health centre and provision of a new play pathfinder scheme in the heart of the village centre.