But the job has been scaled down from an original price of £216m to £100m in the wake of the Government’s construction efficiency drive.
The construction timetable has also slipped from a planned spring 2012 start to summer next year.
The Interserve led consortium will design, build and operate the new facilities for West Yorkshire Police Authority and West Yorkshire Police.
The Treasury had originally granted the scheme £216m of PFI credits but that has now been reduced to £100m.
The new headquarters and custody facilities will be located at Elland Road in Leeds and Havertop Lane at Normanton.
The new Specialist Operational training centre will be located on a site adjacent to the Force’s Operational Support Division at Carr Gate in Wakefield and will include state of the art firearms training ranges, driver and public order training facilities.
Construction will start on each of the sites in the Summer 2012, to be completed in 2014.
Chair of West Yorkshire Police Authority, Councillor Mark Burns-Williamson, said: “This has been a tremendously competitive process, and with this approval, the delivery of the long awaited new facilities moves an important step closer.
“I am delighted that in approving the business case, the Home Office and Treasury have recognised the strength of these proposals and the value for money they will deliver.
“We have been impressed with the proposals developed by the Interserve design team which will deliver flexible, sustainable, innovative facilities fit for the 21st Century.
“The successful bidder has also made firm commitments to maximise the positive impact on the local economy during the construction process and beyond, providing many construction jobs including commitments to provide 85 apprenticeships.”