Dudley Council said J R Slee, based in Shrewsbury, won the tender for the revamp, which is set to include a new bar and bistro.
A provisional start date of October 11 has been set for the revamp and it is hoped the project will be completed by the spring of next year.
The bar and bistro will be accessed off Priory Street using the Memorial Tower entrance, with plans to also create an outside seating area for continental-style drinking and dining during the warmer months.
It is hoped the new facility will generate additional income for the council by providing an additional outlet selling drinks and refreshments for people attending shows at the St James’s Road venue.
The plans also reveal that council bosses plan to open the new bar and bistro every day to the public and not just when shows are on at the venue.
Councillor Simon Phipps, cabinet member responsible for borough halls, said: "This is an exciting development for the town hall, and for Dudley town centre as a whole, so I’m delighted to hear that work is soon to start on making it a reality.
"The existing bar at the town hall is too small, so our plans will give patrons more options of drinking and dining within the town hall before, during and after our shows.
"We need to maximise the hall’s revenue opportunities to ensure it remains a viable venue in the future, and this will help us to do that."
The development will be discussed at the next meeting of Dudley Council’s cabinet on Thursday at Dudley Council House in Priory Road.