Work is expected to start early next year on the facility, which will include an auditorium, stage, library, archive storage and a cafe.
Project Director Vilnus Talagi said the New Zealand government has agreed to provide $US2.7 million US dollars for the centre.
He said it will give a home to artefacts in Niue which have been in storage following Cyclone Heta in 2003, and items they hope to repatriate from museums overseas.