Works on the partially burnt Kangaroo Flat Remembrance Park chapel get under way this week.
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The change comes after the local community petitioned against proposed plans to demolish the site.
Remembrance Parks - Central Victoria chief executive Graham Fountain said they would be working with the community to raise funds for the works.
Mr Fountain said the interest from the community had helped move the process along.
"We would like to thank all community members and groups that have helped make the restoration possible," he said.
"We are keen to work in partnership with the community to realise our overall objective which is to restore (the chapel) to its former glory.
"We want to utilise this chapel as a place for reflection."
The effort aims to restore and maintain this piece of Kangaroo Flat's history.
The chapel was deemed structurally unsound after a fire in December 2012.
