Wellingborough Council has agreed to take over the running of the recycling centre in Wollaston so it can remain open.
Northamptonshire County Council, which runs the facility at the moment, outlined plans to close it earlier this year to reduce costs.
Following months of negotiation, members of Wellingborough Council’s resources committee agreed last week that partner organisation Wellingborough Norse would take over the site for a 12-month trial, starting at the beginning of April.
It is estimated that running the facility will cost about £75,000 over the year.
This could mean that profit from the joint venture agreement between the council and the company could be reduced.
Cllr Paul Bell, leader of the borough council and chairman of the resources committee, said: “Wollaston recycling centre is a popular and valuable local facility, and people have told us they want to see it kept open.
“After the county council decided it would have to close, negotiations began and we have agreed that Wellingborough Norse will take it over for a year.
“Running it is not a cost that will come directly out of council budgets, but if the site is unable to be operated with reduced running costs, or additional income cannot be generated by the facility, any loss will affect the profit share we get at the end of each year.
“This will ultimately have an impact on council budgets, which is why we’re only trying this arrangement for an initial 12-month period.
“We don’t know yet what will happen next year, but the most important thing at this stage is that local people can be reassured that the site will remain open for at least the next 12 months.”
Cllr Michael Clarke, county council cabinet member for transport, highways and environment, said: “I’m delighted that by working together with our partners we’ve been able to arrive at this innovative solution, which means that residents will keep this service in Wollaston.
“Providing accessible recycling facilities for the people of Northamptonshire is important to the county council but it’s also essential that we do so in a way that provides value to the taxpayer, which I believe this solution achieves.”
Operating hours will be unchanged under the new arrangement, with the facility at Wollaston remaining open between 10am and 6pm on Monday, Tuesday, Friday, Saturday and Sunday.
Wollaston is a recycling-only facility and accepts most recyclable items, including electrical appliances, building materials and garden waste, but not general household rubbish.