A new Isle of Man ferry terminal could cost up to £30m and open in Liverpool in 2021, the Manx government said.
It will be built half a mile (800m) from the current Pier Head facility at Princes Half-Tide Dock.
Subject to Tynwald approval, the Manx government will sign a long-term leasehold agreement with Peel Land and Property Limited for the site.
Liverpool Mayor Joe Anderson said: "It will cement our strong links with the Isle of Man. I'm delighted."
The existing Pier Head facility is set for a major redevelopment as a cruise liner berth as part of the £5bn Liverpool's Waterfront scheme.
Manx Infrastructure Minister Ray Harmer said the deal was "vital to... ensure significant improvements for ferry users".
In May, the Manx government bought the Isle of Man Steam Packet Company (IoMSPC) - the island's sole ferry operator - for £124m.
Mr Harmer said: "This agreement now means the Isle of Man Government has complete control over its lifeline sea links to the UK."
The new Liverpool terminal will also have improved highway access as part of Liverpool City Council's City Centre Connectivity project.
Liverpool City Council has yet to receive a planning application for the project.