Ludlow Town Council will lead the refurbishment, which is expected to cost more than £500,000, with support from the Church of St Laurence and Shropshire Council.
A section of historic wall, which borders the graveyard of the church, fell down in February 2013 and remains in a collapsed state.
Talks over who was responsible for repairing walls were put on hold in June while a fresh geophysical survey was carried out.
Ewart Carson, chairman of the church's fabric committee, said no work would start until at least the spring.
Mr Carson said the churchyard had originally sloped away from the church, but about 200 years ago it was filled with extra soil so further burials could take place.
He said repairs were also carried out on the wall using cement rather than lime mortar, which meant there was nowhere for any excess water to travel.
"The water built up and froze, which eventually led to the wall collapsing," he said.