The scheme will involve the complete reconstruction of the pavement and footpaths on Davitt Street.
It has been designed to improve safety and the flow of vehicles within the town.
Work is expected to start on site in January 2019 and take eight months to complete.
Cllr Michael Fitzgerald, District Cathaoirleach, said: "This scheme is very much needed in Tipperary Town and I am delighted that Tipperary County Council is signing the contract with Tony Kirwan Civil Engineering Ltd., to undertake the works. It is welcomed and this investment is key for the town."
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Joe MacGrath, Chief Executive, Tipperary County Council, added: "The Council has been working closely with Transport Infrastructure Ireland (TII) to advance these works and I am delighted that they will be commencing early in the new year. This investment will enhance the town and we look forward to working with the contractor and local residents in the coming months."
Further pavement improvements are planned in Tipperary Town for Main Street and Fr Matthew Street following the completion of this stage of works.
(CM)
