The gallery has become the centrepiece of the region's burgeoning tourism industry during the past decade.

The successes of its blockbuster exhibitions have flowed through the community with accommodation, hospitality and retail providers all experiencing a boom as the economy looks to recover from the impacts of the COVID-19 pandemic.

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Gallery director Jessica Bridgfoot said the closure would follow a yet-to-be-announced 2023 international exhibition and would continue until 2025.

"We will be closing mid next year for construction and (plan to) reopen in 2025 with a cultural program planned for 2026," she said.

"The redevelopment will take in the entire site, so the gallery will be fully closed for two years."

Ms Bridgfoot said the gallery plans to runs programs off site during the institution's closure.

"In some ways (closing) is counter intuitive," she said.

"We have been so focused on exhibitions and public programs and having that public contact. We will be running programs off site, which we hope will be pretty exciting.

"While we may be closed on the physical site, we will still have a physical presence.

"We work on exhibitions over two years in advance (and) are in discussions now with international institutions for 2026 and beyond. That's how far we work ahead, which is pretty standard internationally.

"For the next while we will ride Elvis' coat tails."

The redevelopment is still contingent on funding being secured, with $21 million still to be raised for the project through state and federal governments.

Tenders for the redevelopment and extensions project's architectural services have already been advertised.

Currently, funding includes $3 million from the City of Greater Bendigo, $2.5 million from the Bendigo Art Gallery board and $1.5 million from philanthropic donations.

Ms Bridgfoot said following the closure of Elvis: Direct From Graceland, gallery teams would turn their attention to advocating for the development funding so works can proceed.

"Elvis has shown us the capacity, desire and demand of that building needs to increase to take the gallery to next level.

"We are hoping for a state government announcement later in the year."

The development will include a second level being added to the gallery, and will overlook historic View Street.

Plans also include a dedicated blockbuster exhibition space.

The ground level will connect View Street to Rosalind Park with ground floor space for Australian and contemporary exhibitions.

The gallery's footprint will grow by up to 800 square metres and also include a new retail space, forecourt and landscaping on View Street.

Before the planned 2023 closure, the gallery will host the Treasures of Dai Gum San in collaboration with the Golden Dragon Museum from August 20.

"We are focusing on some local stories about Chinese settlers in Bendigo," Ms Bridgfoot said.

"It is a fantastic show that has uncovered treasures from the Golden Dragon Museum and celebrates craftsmanship and artistry.

"At the same time, we will also have an international contemporary art collection on display from Geoff Raby in collaboration with La Trobe Art Institute, who is one of our partners."

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