A new community centre will become a "one-stop" venue for facilities in a Sheffield village.
Sheffield Council said developers Jaguar Estates Group, will start work on the project in the summer and hoped to open it in 2019.
The current Woodhouse Library will close and moved across Sheffield Road into the new facility, which the council said would be run by the community.
The development will also include eight bungalows and four homes built on the junction of Stadbroke Road and Sheffield Road.
Rod Wadsworth, a director at Jaguar Estates Group, said the project would help create a "one-stop venue" for a range of community facilities.
“We’re excited about this project as it gives us the opportunity to create a space that is welcoming and appealing and also flexible for a range of essential community services and projects - all under one roof. We’re looking forward to taking this to the next stage and to its opening in 2019,” he said.
Coun Mary Lea, cabinet member for culture, parks and leisure, said: “We are pleased to have been able to support this new community building which will be a much-needed and loved resource for people in Woodhouse and the surrounding area.
"We have worked closely with the community that runs the library to bring forward these plans and look forward to seeing them come to fruition.”
Woodhouse Cllr Jackie Satur said: "I welcome this wonderful news on behalf of myself and fellow councillors Mick Rooney and Paul Wood. I know how eagerly anticipated this news is within the Woodhouse community and how long they have waited for confirmation that the new library and Community Hub would be built.
"It is important that I thank the Woodhouse Community Forum for all their hard work and patience on this project. We are pleased that Jaguar Estates Group has committed to building a new facility as part of their larger plans for the area.”
Howard Constable, of the Woodhouse Community Forum, said the facility will be a "magnet for the whole community".
He said: “It is fantastic news that Woodhouse is to get its own new library and community centre after a very long time without any civic buildings, it will serve the community well and will be a magnet for the whole community. We wish to thank the staff and volunteers of Woodhouse and District Community Forum and all of our local city councils for their continued support in this matter.”