Work on the £2.57 million scheme to regenerate the centre of Northallerton will start early next month.
Contractor Galliford Try will move on to the site on March 8.
Work will initially begin outside Barkers Arcade where the area will be repaved and tree pits installed.
The pedestrian crossing close by will be temporarily moved during the work.
This first phase will also see the kerbstone edging along town square replaced.
The Hambleton District Council project will see the town square in front of the town hall enlarged, High Street paving replaced up to the newly improved Zetland Street, the setting of the Market Cross improved, trees planted, and seating and lighting replaced.
“This is an important part of our work to upgrade our county town,” said Leader of the Council, Councillor Mark Robson.
“It will create a new town square where we can host events and outdoor leisure activities – and rejuvenate the High Street with links to the new Treadmills development.
“We are delighted that one of the UK’s leading contractors has been signed up for this and look forward to working with them.”
Chris Moody, contract manager for Galliford Try, added: “We are delighted to have been appointed to the Northallerton Improvement Scheme.
“We are looking forward to working together with Hambleton District Council to create a special space in the town centre and surrounding area.”
Councillor Caroline Dickinson, County Councillor for the Northallerton division and District Councillor for Northallerton South, said: “This project is all about building on the Zetland Street improvement scheme in ensuring the future sustainability of the town centre.
“By enhancing the area’s heritage it will encourage more people to visit and appreciate all Northallerton has to offer.
“I can’t wait to see the developments come to fruition.”
David Dickson, chair of the York & North Yorkshire Local Enterprise Partnership Infrastructure and Joint Assets Board, added: “The work taking place in Northallerton will bring huge economic benefits to the area.
“Connectivity and enhanced cultural spaces are among the key components of a thriving town centre, so it’s great to see the scheme’s continued progression.”
He said around £1.25m has been used from the Local Growth Fund for this phase of works.
The scheme will be part funded by the York & North Yorkshire Local Enterprise Partnership, with investment from the government’s Local Growth Fund, Hambleton District Council and central government’s Future High Streets Fund
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