The pavilion is to be split into two separate parts by removing the concrete canopy and adding new lighting around its perimeter.
The redevelopment is designed to complement the council's wider ambition to transform Piccadilly Gardens and the surrounding area.
The area's redesign has been given a £25m budget by the council. Last July, the council announced LDA Design had won a competition to produce the designs for the new space.
Manchester city council and Greater Manchester Police are supportive of the pavilion's development but do not believe it will completely solve the area's problems around addiction, homelessness, and antisocial behaviour.
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