The Waipuna (Halswell-Hornby-Riccarton) Community Board has given the funding to the Community Development Network (CDN) Trust.
The trust will use the money to refurbish an old Plunket building in Wycola Ave, Hornby.
CDN Trust Manager James Harris said the centre is "a safe place for young people to come after school to play a game of pool or foosball, share a scoop of chips with friends, play some basketball and chat with a youth worker".
The youth hangout currently operates out of the Hei Hei Community Centre on Tuesdays for intermediate school-aged children and Thursdays for high school students. It is open from after school until 5pm.
Youth workers from the CDN Trust are available to chat, and the centre has several games including air hockey, foosball, Pool, Basketball, PS4 and Wii.
Harris said the new centre would be open the same hours in its new location, but could add an extra day if the need arose.