Blackburn with Darwen Council has awarded Brown Construction Group with a £5.1m contract for its indoor Continental-style market.
The council said Brown Construction Group will provide fitting out works including mechanical and electrical installations and trader counters and signage.
The market will be based in the ground floor of Capital & Regional's newly extended £66m Mall shopping centre and is due to open in spring next year.
The council said the new market will replace the existing market which dates back to the 1960s.
Local traders have opposed plans for a new market, saying it should remain true to its traditional roots.
The new market will have entrances from Church Street, Ainsworth Street and from within the shopping centre itself. Connected by escalators and two lifts to the department stores, there will be 127 stalls. Of these, there will be 61 food, 50 non-food, one café, nine café/catering stalls with shared seating and six mini shops.
The relocation of the market will free up one of the largest sites in the town centre for development.
The council said the contract will be sub-contracted.