North Lincolnshire Council is set to invest around £800,000 into relocating Ashby Market following permission being given for the plans.
Work is expected to start at the beginning of July 2017 and be finished in the autumn.
The new-look Ashby Market will be located on Broadway and will be transformed into a street-style market.
It will be held every Thursday market day and ad hoc events will take place on other days.
Broadway will be pedestrianised on the market day and when events are taking place, with no access to vehicles.
Car parking will be available in this area every other day.
Councillor Rob Waltham, leader of North Lincolnshire Council, said: “It is fantastic that we can now progress with the plans for a street-style market on Broadway.
“We are committed to improving and supporting our markets in North Lincolnshire, which is why we are investing around £800,000 to develop Ashby Market.
“Markets should be in the heart of our communities and with the new-look market we hope it will encourage more people to buy local and support their local market.
“Work should begin in the beginning of July and the new-look Ashby Market will be ready for customers in autumn this year.
“Before work starts we will be going out to speak to retailers and traders in Ashby about the plans in more detail.”