The Arthur Kill Station, which has been delayed since the 1990s, will replace the current Atlantic and Nassau stations and add a parking lot for commuters.
"We are pleased to finally get this project funded and off the shelf," said Carmen Bianco, president of NYC Transit.
The $24.7 million station, which is slated to be complete in late 2015, will have a 150-car parking lot across the street, wheelchair-accessible ramps, surveillance cameras and two concrete side platforms, the MTA said.
"This is a huge step forward for Staten Island," said U.S. Rep. Michael Grimm. "The park-and-ride is a tremendous benefit for...many people that live in this area."
The station will have two entrances, one from Arthur Kill Road and the other from Ellis Street, and the Department of Transportation will add a new traffic light at Arthur Kill Road, the MTA said.
When completed, the Atlantic and Nassau stations, which have low ridership numbers and small platforms, will be demolished, the MTA said.
The station will be the first new one for the Staten Island Railway since the MTA took over the line in 1971.