Glebe's Town Hall will undergo a $6.8 million restoration - the first major upgrade since the Town Hall was built in 1880.

A new street-level entrance will be added on Lodge Street, including a glass facade which will allow natural light to flow through the building, and an extra ramp on Mt Vernon Street.

The facade will be restored, removing salt and water damage and repairing and remoulding the original ornamentation.

A new internal lift accessing all floors will be installed and a new stairway added to supplement the restored original timber staircases.

To improve energy efficiency in the building, new fittings will be installed to save water and energy consumption.

Other work will include restoring the clock tower with its metal cresting and repairing the clock to working order, installing insulation, replacing the roof slate, reinstating original windows with improved seals, repairing heritage elements and adding new bathrooms and catering facilities.

The Glebe Neighbourhood Service Centre, which currently operates from Glebe Town Hall will be permanently moved to the Glebe Library.

Once complete, the restored building will house an early childhood healthcare centre. Work is due to start in early August and is expected to be complete in early 2012.