It will also retain the history showcased at the eastern end of Cressy St.
The money will be spent on redevelopment of the former Australian Estate Building.
The funding is in addition to more than $1 million in grant funding already received by the council to progress its redevelopment of the Deniliquin Town Hall.
The existing customer service centre demountable building — which separates the two historic buildings — will be relocated to council’s works depot.
Mayor Norm Brennan said in its place, council intends to create more community space.
‘‘Over the coming year, council will be progressing a comprehensive revitalisation of the Civic Place precinct, comprising two sub-projects in the Deniliquin Town Hall revitalisation and the estates building restoration,’’ Cr Brennan said.
‘‘The Deniliquin Town Hall project has already attracted $1.3 million in funding through the New South Wales Government’s Stronger Country Communities Fund, and council has now allocated $2 million in its 2019/20 budget to restore the Estates building as a contemporary customer service centre and council chambers.
‘‘The demountable building currently located between the town hall and Estates building, which houses both our customer service operations as well as our council chambers, will then be relocated to our works depot, freeing up the area between the two historic buildings to be redesigned as an open public space.
‘‘Coupled with the other projects we will be progressing in 2019/20, including the Napier Street and Cressy Street streetscape revitalisations and the Deniliquin riverfront enhancements, this project will help realise our community’s vision of having a connected, visually appealing CBD.’’
The Estates building, which once housed council’s economic development staff, has been mostly disused for the past year.
9°C