Barrow-in-Furness Borough Council and South Lakeland District Council will work together to procure up to £32m of grounds maintenance work in the area.
The contracts - which are for an initial period of seven years, with the option to extend for a further seven years - cover parks, gardens, open spaces, cemeteries and amenity sites.
The work is currently being undertaken by Continental Landscapes, in two separate contracts. But the local authorities believe that by working together, they can become more cost-effective and benefit the contractor.
South Lakeland District Council corporate director for communities Lawrence Conway told HW it was part of a move to help both councils be more efficient.
"By jointly procuring with Barrow, there are economies of scale and we can look at common standards," he explained. "Our understanding is that there are a number of interested parties in this particular contract. It is a substantial revenue and a long-term plan for them."
Barrow-in-Furness covers 80sq km and the council manages around 350,000sq m of grassed green space, 150,000sq m of highway verge and 130,000sq m of parkland grass.
The District of South Lakeland comprises approximately 1,551sq km. The council is responsible for more than two million square metres of amenity green space.