Stockton-on-Tees Borough Council worked in partnership with Yarm Town Council to develop proposals for the refurbishment of the Grade II listed landmark.
Under the plans, the Town Hall will have a full external restoration to include the opening-up and reinstatement of its original brick arches with new glazing.
Internal improvements also include the conversion of the building to provide an open ground floor space for a Heritage Centre. The first floor of the Town Hall will remain as a meeting space and a new Heritage learning area will be developed.
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Contractor Wharton Construction has been appointed to carry out the works, which are expected to take around five months to complete. During the building works, a number of parking bays will be temporarily suspended.
New long-stay car parking spaces are now also available to residents and visitors in a new pay and display car park off West Street.
The work is being funded as part of the Council's successful application for £20million from the Government's Levelling Up Fund, alongside contributions from Stockton-on-Tees Borough Council's Town Centres Investment Programme and Yarm Town Council.
The refurbishment of the historic town hall is part of the next step towards improving Yarm town centre and its visitor experiences.
Part of this includes the relocation of the public toilet adjacent to Yarm Library, which is now open to use.
A separate bid is also being prepared to the National Lottery Heritage Fund in order to develop a full heritage-based activity programme at the Heritage Centre.
