The entire stretch of Allhallows, from St Loyes Street down to Midland Road and including Church Square, will be given an upgrade this summer.
The much-needed improvements will enhance the road which is a busy link between the bus station, train station and town centre.
New seating, cycle stands and lighting will be installed, creating a new public space for people to enjoy and help to attract new businesses.
Church Square – also known as Pigeon Square – is also included in the major project.
The works will begin this summer and will see the existing pavements and roadway being rebuilt and re-laid with a high quality granite surface.
Members of the public will still be able to access this area and the shops and cafes while work gets underway.
The project is expected to be complete next spring.
Mayor Dave Hodgson said, “With the building of the new bus station, the surrounding area had begun to look tired and I am very pleased that we can bring forward this major improvement project.
“Council officers and the contractors will be going door-to-door with local businesses in the coming days to speak to them about the works, and answer any questions they may have.
“We have tried to keep these works as low impact as possible, with a phased approach to ensure pedestrians can still come through and a suspension of works in the run-up to Christmas.
“With upcoming works to the High Street to create more space for pedestrians and reduce traffic, and the exciting possibilities represented by the Town Centre Plan, the Town Deal and the High Street Heritage Action Zone we are looking to the future to ensure our town centre continues to thrive in these difficult times.”
Daniel Coyle, managing director of Ryebridge said “We are really excited to be Principal Contractor and delivering these improvements.
“To make it easier for the public and retailers to communicate with us we have secured a retail unit on Allhallows where our team will be based and happy to take any comments or queries.
“There will be social distancing measures in place but we will use the shop front to display relevant information such as plans, maps and updates.”