The 30-year agreement, will see the Barbican extend its business tourism offer and enhance its existing facilities, which include a dedicated restaurant and meeting rooms.
Once completed the Barbican will employ over 60 staff and have a capacity to host 1,500 guests.
Venue bosses predict the improvements will see the space bring in up to £11m to the York economy be able to host more than 350 events and 50 conferences a year.
City of York Council assistant director for Communities and Culture Charlie Croft said: "It is great news that we now have a firm plan for the Barbican to reopen in May 2011, with improved facilities and an exciting programme for everyone in York."
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