Yorwaste has secured a three-year deal to carry out kerbside collections across four Yorkshire districts.
The waste contractor will collect from households across Hambleton, Harrogate, Richmondshire and Craven.
The district councils will see the income they earn from recycling increase by a combined total of up to £386,000 a year.
“By working in partnership we have been able to get the best price possible for the glass, cans, paper and plastics collected from our kerbside recycling schemes,” said Hambleton councillor Brian Phillips.
Yorwaste managing director Steve Grieve said: “Due to the quality of our recycling operations we are able to deliver the best prices for our customers, at the same time as helping them to meet their waste reduction and recycling targets.
“Working in partnership with Hambleton and Richmondshire District Councils we are looking forward to maximising the value from the current recyclables collected from kerbside schemes, as well as exploring other material that may be added that could further increase recycling levels.”