The development now renamed The Glass Works is located on a 3.8 hectare site around Cheapside and will be developed with a 590,000 sq ft complex of shops, restaurants, multiplex cinema and bowling.
Contractor Henry Boot Construction is working on the first phase, which involves building a new public library, after Barnsley Council put up £50m last year.
Now the council has decided to commit an extra £70m to fund the phase two leisure and shopping centre due to open in May 2020.
The council also revealed leisure giants Cineworld and Superbowl have both signed up as anchor tenants.
Barnsley 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.”
Stuart Harris, Commercial Director and Co-Founder of Queensberry, said that while construction is ongoing on the first phase of the scheme, Queensberry and Turner and Townsend, as development managers, will shortly submit a planning application for the larger Phase 2 complex.