And health bosses have today confirmed the unit will be based at St Mary's Hospital in Armley, and say it will reduce the number of patients who are having to travel long distances for treatment.
Outreach, disability and mental health services are already offered to patients on the site through Leeds and York Partnership NHS Foundation Trust, and work is expected to start on the new unit in early 2019.
Leeds currently has eight general CAMHS beds, provided by Leeds Community NHS Healthcare Trust, but the new unit will add 18 specialist and a further four psychiatric intensive care beds.
It follows health reports commissioned in 2014 and 2015, which recommended a national review of NHS CAMHS services.
Thea Stein, chief executive of Leeds Community Healthcare NHS Trust, said: “Our ambition is to make sure that no child or young person within West Yorkshire goes out of area for treatment. This is better for them, their families and better for the local health and care economy.
“The next step will be to work closely with staff, patients, their families, the local community and wider partners to finalise plans and develop a modern, fit for purpose facility of which wecan all be proud”.
The announcement about the proposed site for the new unit comes just months after the YEP launched a renewed focus for our #SpeakYourMind campaign, which is calling on people across the city to help make Leeds mentally healthy.
Funding for the unit was allocated in the latest Budget, and it is among 12 other successful bids that are now set to receive NHS England capital cash.
The successful bid was led by Leeds Community Health Care NHS Trust, on behalf of the West Yorkshire and Harrogate Health and Care Partnership, which is made up of mental health organisations across West Yorkshire that aim to improve services.
Rob Webster, lead for Harrogate Health and Care Partnership, said: “We are delighted that this much needed unit has been chosen to receive funding.
"This is firmly in line with our plans for children and young people’s mental health and shows the benefits of working together.
“We can now do two things - deliver joined up care in communities with NHS, council and voluntary and community organisation; and have the confidence that we can access the besthospital care possible in the right environment.
"This new unit will mean children and young people who require an inpatient bed will be able to get the care they need closer to their homes, making it easier for their family and carers to visit.”
The nationally-commissioned 2014 CAMHS Tier 4 Report and 2015 Future in Mind Report recommended changes to services.
Work is set to start next year, subject to business case approval from NHS England and further planning work.