Work will start early in 2021 on the scheme to create a new city gateway.
The design and build project includes a new station building, lift and staircase tower to Cheapside and Manor Row.
This new, larger building will incorporate the arches behind the station and provide a new cafe, information centre, new toilets and seating, parking for 75 cars and a community garden and meadow area.
Funded through the Combined Authority’s West Yorkshire-plus Transport Fund, the scheme will also create better access to the city centre and the nearby Broadway shopping centre.
The plans complement the recently announced Transforming Cities Fund bid plans for four major transport schemes in Bradford city centre.
The four plans include improvements to Bradford Interchange, a park and ride at south Bradford, an extension to the City Connect cycle route to the west of the city and a package of measures in the city centre.
They are all designed to improve public transport and provision for walking and cycling, while a better overall environment through creating new enhanced public spaces and addressing issues with air quality.
Coun Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport, said: “We’re delighted to be able to be making this announcement that will take this much needed redevelopment project for the city centre another step forward.
“We look forward to working with Morgan Sindall Construction to develop the proposals further including preparation of a planning application for the new station in the New Year.”