It is hoped events at the centre could steer young people away from crime, particularly knife crime.
More than £3m could be spent on a youth centre aimed at supporting young people in deprived areas.
The remaining £400,000 will be used for the running costs for the first year of operation, according to the Mr Dixon added: "It is so important that we provide youth services for our children and young people so we steer them away from potential criminal activity and, in particular, knife crime.
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