The centre, which will be built at the northern end of Knowsley Industrial Park, replaces an existing site 300 metres away.
It will provide more modern recycling facilities and the capacity to receive 15,000 tonnes of household waste and recyclable materials each year.
Merseyside Waste Disposal Authority director Carl Beer said: This is fantastic news for Merseyside residents and especially those in Knowsley.
It is not only a major investment in the area but also means vastly improved recycling facilities for a service which is very well used.
The new site will also include new expanded spaces for the collection of waste electrical items and will be operated by Veolia Environmental Services.
It is hoped work will start on the site later in 2010.