The theatre's $6.8 million upgrade was approved by the building's owner, the Dunedin City Council, on Monday, and council property manager Robert Clark said yesterday planning was well advanced.
The Otago Theatre Trust asked the council last May to help fund the upgrade, and the council agreed to fund almost $4.8 million if the trust raised $2 million.
A council meeting on Monday was told the funding had reached $1.65 million, and a request to the Lottery Grants Board for $750,000 could not be gained until both building and resource consents had been obtained.
Mr Clark said the work on the fly tower could be done without interference to the running of the theatre.
When the main work began in October, the theatre would be closed until it was finished in the middle of next year.
That work would involve renovating the dressing rooms, and adding a floor to the building that housed them, which was behind the main theatre building.
The auditorium would get new seats, and improved ventilation and sprinkler systems.
As well, there would be a "general tidy-up", including repainting the ceiling of the theatre.
Asked whether the work could be done within budget, Mr Clark said prices were still being finalised, but that aspect of the project was "pretty well organised".
