The multi-screen cinema scheme, complete with three food and drink outlets, will be located on the former Kirkby Library site on Cherryfield Drive.
Construction is due to commence in the coming months following planning permission for the site and an operator, Reel Cinema, being secured.
The latest phase of the town centre improvement plan follows the successful completion of a retail development.
Councillor Tony Brennan, Regeneration and Economic Development Cabinet Member, said: “Our plans for Kirkby Town Centre always extended beyond the retail development and I’m delighted that the next phase of our development plans have taken a significant step forward with the appointment of a construction partner for our cinema scheme.”