The economic development company Liverpool Vision is to be absorbed into the local authority from April 2011.
Liverpool Vision will become a directorate of the city council and will focus on enterprise support, culture and tourism.
Of Vision's 55 staff, 10 in the property development team will join the council's regeneration directorate, and 45 will be offered roles in Vision or elsewhere within the council. All staff will be offered voluntary redundancy but there will be no compulsory redundancies.
The move in-house follows the loss of public funding from the North West Development Agency and Homes & Communities Agency.
Cllr Joe Anderson, leader of Liverpool City Council, said: "The council faces significant challenges following the recession and the subsequent comprehensive spending review and we need to streamline all our services to ensure maximum efficiency and to maintain the momentum of Liverpool's renaissance.
"The need to deliver private sector driven economic growth and investment is greater than ever and we need to be regarded as a highly business friendly city, make the most of our distinctive assets and continue to forge strong international connections around investment, trade, tourism and education.
"It makes sense to bring Vision's development team within the regeneration directorate of the city council and for Vision and our culture team to come together to strengthen how we promote and exploit our economic and cultural assets."
The current Liverpool Vision was incorporated as an economic development company in May 2008, following the merger of urban regeneration company Liverpool Vision, Liverpool Land Development Company and Business Liverpool. It is based in The Capital on Old Hall Street in the city's Commercial District where it will retain its base.
Max Steinberg, who was appointed as Chief Executive in April, said: "Liverpool Vision is evolving and moving forward. It will play a vital role with business in developing the city's economy, brand, image and international relations and build on the positive momentum generated through the World Expo in Shanghai.
"It will be the outward-facing business directorate of the City Council, working closely with the regeneration and housing directorates and strengthening its partnerships with the private sector.
"The focus of our activities will be on business growth, markets, investment and on the creative and cultural city as an economic driver and magnet for investment. We will promote the City internationally and continue to build on Liverpool's world class brand."
Staff will transfer by Transfer of Undertakings Protection of Employment Regulations to the city council on 1 April 2011.