Bolton Council's cabinet have approved a £375,000 investment to build a new market after traders called for the current loss-making facility to be replaced.
Pending a separate planning committee decision, Farnworth market will relocate to the side of Asda and the existing site will become a car park.
A total of 19 new permanent shuttered units and 22 demountable stalls will be erected. A further 12 demountable stalls will be installed along Brackley Street.
The market relocation is subject to planning approval and an application is due to be submitted at the end of the year.
If approval is given, the current site will be demolished and turned into a free 43-space car park for the immediate future.
The move will be funded using £325,000 from Tesco, which is opening a new store in Farnworth. The council will provide the additional £50,000 needed to revitalise the market.
The existing market has operated at a loss for a number of years and council chiefs believe that the new plans will boost trade and enhance the appearance of Farnworth town centre as a whole.
Cllrs Ismail Ibrahim, Bolton Council's executive member for development and regeneration and Cllr Akhtar Zaman, executive member for environmental services, said in a joint statement: "This is a much needed boost for Farnworth. Re-siting the market and building new stalls for traders means the market will look far more attractive to shoppers. Traders have been calling on us to improve the market for quite some time and we will continue to speak to them to incorporate their views into the scheme."