Middlesbrough Council has secured a £3.7m grant from the Heritage Lottery Fund (HLF) to restore the Town Hall in Corporation Road.
The council is putting £4m into the scheme which will turn the premises into a visitor "heritage" attraction.
Ivor Crowther, head of HLF North East, said it was a "stunning reminder" of the town's proud industrial heritage.
Parts of the Grade II listed building will be opened to the public, including the Victorian courtroom, cells and fire station.
The plans also include the development of a new cafe, bar, and a new community space.
Work is expected to get under way in January and the Town Hall is scheduled to be closed for nearly two years, the council said.
Middlesbrough's deputy mayor Dave Budd said: "The Town Hall is the jewel in Middlesbrough's crown and this project will restore it to its full majestic glory."
Plans for a £7.7m revamp of a 120-year-old council building have been given the go ahead.