The council was granted resource consent through Lakes Environmental this week. Project manager Steve Hewland said work would begin shortly after the Queenstown Winter Festival and be completed before next Christmas.
Consent had gone through non-notified and Mr Hewland said he was pleased to see things had moved along.
"It's another tick in the box."
The hall upgrade would include floor removal, 172 automated retractable tiered seats, a retractable wall enabling the main hall to be divided, dual access from the foyer, matching side stairs on to the stage as well as external updates.
Work on the outside foyer area would still require resource consent from Lakes Environmental and approval from Land Information New Zealand, as it would extend on to what was classed as public roading.
The 1950s building is likely to be renamed The Memorial Centre to reflect the proposed modernisation of the facility.
Mr Hewland will meet consultants this week and next, along with the hall's dedicated working party, The Memorial Hall Charitable Trust, to look at concept plans for the hall.
The trust was formed as a "fundraising vehicle" to help raise the $2,562,000 cost of upgrading the council-owned facility.
Working party chairwoman Cath Gilmour said she was thrilled the hall had been given consent.
Mr Hewland said the next phase was to dig deeper into the detail of the hall, which would include "raising the structural integrity of the building" in case of an earthquake.
Consultants include mechanical engineer Alan Cook, of Dunedin, structural engineer Tim Bradford and architectural designer Noel Tapp, both of Queenstown.
The hall would host several Winter Festival events next year and one final "day in the life of the memorial hall" show before the end of July 2012.
He said there had been talk of Cr Gilmour smashing the last brick with a sledgehammer, to begin construction.
