The council-owned entertainment venue is due to reopen next year - more than five years later than planned after a revamp which has cost four times the original estimate.
As part of plans to get the site finally ready to welcome guests again, work is set to take place to create a wider pedestrianised area outside the halls.
The North Street carriageway will move closer to the nearby Civic Centre and a new designated cycle route through North Street will be built.
Meanwhile Mitre Fold will become a pedestrian zone with access for deliveries only.
A new link road will be created between Paternoster Row and North Street to help traffic flow around the halls.
It is among the projects being funded by a £15.7 million grant awarded under the Government’s Future High Street Fund.
Wolverhampton's environment chief, Councillor Steve Evans said: “We’re excited by the opportunity to work with the AEG Presents team to deliver the new-look Civic Halls and we’re investing in the public space outside the building so the whole customer experience is fantastic for visitors to the iconic venue.
“This is the next phase in developing a world-class venue and space that will act as an economic driver for the city.
“We want people to enjoy our city centre from the moment they arrive, and our public realm works will be transformational, forming a key part of Wolverhampton’s recovery plan following the impact of the coronavirus pandemic.
“They will deliver real, tangible benefits for businesses, residents and visitors to our city centre, supporting the development of our five-year events strategy, which will get into full swing in 2022, with the Commonwealth Games cycling time trial, British Art Show 9, our first-ever Creation Day Festival in addition to the reopening of our Civic Halls.”
Site clearance, surveying and drainage checks in this area have already been completed by contractors Eurovia.