The event spaces are to be spruced up in an attempt to establish Blackpool as a "world class family leisure destination".
Merlin already owns the Sea Life centre located on Blackpool's promenade, but will add a dungeon attraction, a similar 4D preview show to the one it has added to the London Eye, and improvements to the Louis Tussauds waxworks, which will be transformed into a second Madame Tussauds.
Madame Tussauds will open in Spring 2011, Tower improvements will open later in the same year.
It is hoped the plans will bring both tourism and corporate events money into the seaside resort.
"This is a bold but necessary initiative which provides the best possible platform for strengthening the destination role of the town," said regeneration body ReBlackpool chairman Sir Howard Bernstein.
"I am confident that this will result in a significant increase in jobs and visitor numbers and will weld together all the other valuable projects and programmes which are designed to make Blackpool an attractive place to live, visit and invest."
Would you hold events in Blackpool? Is £10m enough? To add a comment register and let us know your thoughts.