The expansion project is set to begin in April but the museum is already closed in preparation. Works are expected to be completed late in 2018.

More than $4.2 million will be spent on he conservation of the iconic building and the development of a new exhibition gallery with climate control features, storage and preparation areas.

City of Greater Bendigo council is providing $800,000 of funds to the project while the state government is providing $1.2 million and the federal government has granted $1.7 million.

The Bendigo District RSL will also raise $500,000 for the project.

Restoration works will include a total roof replacement, new sky lights, external render repairs and a new exterior wash coat to replicate the original stone coloured finish.

Other works include restumping and installation of new flooring in the Billiard Room as well as ceiling and plaster repairs and painting.

City of Greater Bendigo mayor Margaret O’Rourke said the project would ensure the Institute continued to be a great asset for the region.

“The restoration work is very important, as it will ensure the building is reinstated to its original condition,” Cr O’Rourke said.

“The new gallery space will allow the Institute to host special exhibitions which require climate control facilities.”

Bendigo District RSL General Manager Martin Beekes said the upgrade would allow the arts precinct within Bendigo to continue to expand.

“We hope to see travelling exhibitions from the Australian War Memorial and the Shrine of Remembrance in Melbourne come to Bendigo,” Mr Beekes said.

“This will enhance the display of treasured Bendigo military memorabilia already in place.”