Publishers of London's two free afternoon newspapers have agreed to set up a dedicated recycling service to tackle the problem of discarded copies.
The bins will be placed in four areas
The firms behind thelondonpaper and London Lite will each buy and install about 40 recycling bins in central London and recycle the contents.
Westminster Council said regular litter collections would also be carried out by the companies as part of the deal.
The council had threatened to ban the papers due to increased waste.
Westminster Council says it collects an extra 1,000 tonnes of paper a year since the introduction of the two free papers last summer.
Every day one million copies are handed out on the streets, with 20 tonnes of paper going into landfill sites or incinerators each week.
After extensive negotiations the publishers agreed to the recycling scheme which targets four key areas.
The four zones are Oxford Circus, Charing Cross and Embankment, Leicester Square and Charing Cross Road and Victoria station.
Councillor Alan Bradley, said: "This has been a complex matter... but I look forward to all parties working together to ensure Westminster's streets are kept clean and that as much waste newspaper as possible is recycled."
The new regime is expected to be up and running later this year for a three-month trial period before an extension is agreed.