Corby Council and Kettering Council have agreed to look at the establishment of a shared service for the provision of refuse collection, grounds maintenance and street cleansing.
The intention is to create a single team that will provide services in both council areas and will be managed by both authorities.
The councils say this change in how the service is delivered will allow improved value for money and increased resilience for both councils.
Further details of the shared service will now be put together in preparation for an expected start date of January 1, 2019.
Cllr Tom Beattie, leader of Corby Council, said: “We look forward to working on this exciting proposal with Kettering Council.
“We both share the same aspirations to achieve improved service delivery and greater customer satisfaction.”
Cllr Russell Roberts, leader of Kettering Council, said: “We are delighted that Corby have trusted Kettering Council to partner with and we look forward to a long and fruitful partnership which will benefit residents both as service users and as council taxpayers.”