The Central Goldfields Art Gallery's redevelopment will forge ahead following a $1.7 million investment from the state government.
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Funds were allocated to the gallery redevelopment through the state government's Regional Infrastructure Fund and the Regional Tourism Investment Fund.
Redevelopment of the gallery will include a new entrance that maintains the historic facade of the 161-year-old fire station, an extended and modernised main gallery as well as a new permanent collection gallery and smaller exhibition space.
Central Goldfields Art Gallery curator and education officer Helen Kaptein said it was wonderful the project moved another step closer to reality.
"The project will see Central Goldfields Art Gallery upgraded to meet the requirements of a contemporary public art gallery and ensure the gallery meets national standards in the presentation of artworks for both touring exhibitions and local content," she said.
"The permanent collection will be properly stored and displayed and visitor facilities will be extended and improved to ensure all ages and abilities are welcomed to the gallery."
It is hoped the redevelopment will transform Maryborough into a must-stop destination for visitors.
"We are revitalising Maryborough's Central Goldfields Art Gallery to encourage more visitors to stop in town, support local businesses and further boost our regions' vibrant economies," parliamentary secretary for regional Victoria Danielle Green said.
Works will also see the building's bell tower overlook a new landscaped garden area designed to acknowledge and celebrate the Dja Dja Wurrung Traditional Owners.
As well as the $1.7 million from the state government, the Central Goldfields Shire Council has committed $273,000 for the redevelopment.
Works began in October 2021 and are scheduled to be completed by September.
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