Cineworld plans to open a a 13-screen cinema as part of a £120 million re-vamp of Barnsley town centre.
Barnsley Council agreed this week to invest another £70 million into the scheme, on top of the £50 million already committed.
To be known as The Glass Works, the development will also include shops and restaurants.
Cineworld has expressed interest in moving to the town as well as Superbowl UK and Laser Quest.
Plans for phase two of the scheme are due to be submitted to the council for consideration now that the firms have pledged a commitment to the town.
Council Leader, Sir Stephen Houghton, said: "We haven't taken this decision lightly; we're confident that it is the right thing to do and will contribute towards building a thriving economy.
"An investment like this will stimulate inward investment, economic growth and create more and better jobs by providing around 800 new retail and leisure opportunities and temporary jobs in the construction industry.
"Throughout the development we have maintained that we will keep the markets at the heart of it all and the final design for The Glass Works shows we have stayed true to our word, while at the same time adding in the modern retail, restaurants and leisure offer."
Stuart Harris, from Queensberry, which is overseeing the development, said: "We’ve reached a major milestone in the delivery of The Glass Works. By committing to fund the second phase of the scheme, Barnsley Council has taken the type of proactive and innovative approach needed by forward-thinking local authorities.
"We have received an impressive level of interest from occupiers, and are very pleased to announce Cineworld and Superbowl UK as The Glass Works’ first confirmed occupiers."
The scheme is scheduled for completion in May 2020.