Cambridge City, Fenland and Huntingdonshire District Councils have signed a five-year waste contract with recycling firm Viridor.
Viridor will sort and market the councils estimated 34,000 tonnes of recyclates at a materials recycling facility based in Peterborough which is owned by Peterborough City Council and operated by Viridor.
A Viridor spokesman said the value of the contract could not be disclosed due to commercial confidentiality.
From March 29, residents in Fenland and Huntingdonshire will be able to include glass bottles and jars in their blue bins, joining Cambridge City residents who have been recycling glass containers, paper, cardboard, aluminium and steel cans, plastic bottles and tetrapak cartons using their blue bins since last November.
Viridor regional manager Stuart Wood said: Recovery of good quality materials and value for money were clear objectives for the three councils. Viridor was not only able to meet those criteria but also to help the councils provide an improved service by enabling them to collect a wider range of materials from the kerbside.
Peterboroughs MRF recent modernisation, together with our strict quality control protocols and procedures will ensure the councils dry recycling is effectively sorted meeting the end-market specifications.
A spokesman on behalf of Cambridge City, Huntingdon and Fenland District councils said: All three councils are among the best recyclers in the country with recycling rates above the national average of 37 per cent and the new contract will contribute towards the councils aspirational targets of recycling between 55 and 60 per cent of household waste by 2020. We are particularly pleased that the contract has enabled us to collect a wider range of materials in commingled kerbside collections, making it easier for our residents to recycle and making recycling provision more uniform across the country.