The Metrolink stop at Manchester Victoria is to be upgraded as part of the railway station's overall refurbishment.
It will be redesigned to provide new platforms to increase capacity and allow more trams through Victoria.
Transport for Greater Manchester has warned of disruption when the work is carried out between January and September next year.
The Victoria stop will close temporarily and alternative public transport services will operate.
The Metrolink stop works and associated enhancements are being funded by the Greater Manchester Transport Fund and European Regional Development Fund.
The redevelopment of Victoria station is being funded by Network Rail, Manchester City Council and Transport for Greater Manchester.
Hyder Consulting was appointed to cover the first three stages of a process to transform Manchester's Victoria railway station in 2010.
Hyder subsequently appointed BDP as architects to deliver the project, aimed to be complete by December 2014.
Peter Cushing, TfGM's Metrolink director, said: "The transformation of Victoria station is a fantastic project and Metrolink passengers are going to benefit from it greatly.
"We've arranged for the work to the Metrolink stop and tracks through Victoria to be done quickly and efficiently in parallel with the station's overall upgrade to minimise the long term disruption and to ensure passengers can benefit from it as soon as possible."