Port Phillip's household recycling will resume being sent for processing from Monday(30 September.
Mayor Dick Gross said kerbside recyclable collections will be delivered to SKM's former Laverton North processing plant, instead of going to landfill, under the short-term agreement with receiver, KordaMentha.
Another arrangement will need to be negotiated with the new owner of the plant, once it is sold.
"Port Phillip Council welcomes the $10 million loan from the Victorian Government which helped KordaMentha clear thousands of tonnes of stockpiled material from the plant to allow processing to resume," Cr Gross said.
He thanked residents for their understanding during the transition period.
"While we are delighted our community's recyclables will again be processed, it's important that the opportunity provided by this crisis to improve how we all manage waste is not lost," he said.
"Whether it's all levels of government supporting a circular economy for recyclables or consumers reducing their 'waste footprint', we can all make a difference. The first 'recycled road' in Port Phillip, rolled out in a trial last week, is an example of how plastic waste can used creatively."
Cr Gross urged residents to ensure they put the right materials out for recycling from Monday.
"Reducing contamination in the recycling stream means a better product for the processors and the environment."
Waste which cannot be put in recycling bins includes soft plastics, such as plastic bags, expanded polystyrene foam used in take-away coffee cups or packaging, glass from broken glasses, windows or mirrors, nappies and food scraps.
