The revamp and extension of the Assembly Rooms will be the first stage in a £5.5m project, the council said.
The Heritage Lottery Fund (HLF) has given £900,000 towards the work on the Assembly Rooms, which will see the building shut from February next year. The money will be used to restore and extend the building.
Tamworth Borough Council will pay £900,000 in match funding towards the work, with Staffordshire County Council contributing £550,000 on top of the £903,400 from HLF.
Plans for the creative quarter include the transformation of the Philip Dix Centre into a Business and Enterprise Centre, the redevelopment of the Carnegie Centre as a restaurant and improvements to the library and surrounding area, the council said.
That project was awarded £2.95m from the government’s single local growth fund earlier this year.
While it is shut, groups that use the Assembly Rooms will be able to use other venues in the borough and the refurbishment is expected to be completed by 2017/18.