Work to extend Saffron Hill Cemetery in Leicester to make sure there is enough land for burials starts this week.
Three acres to the south of the cemetery will be developed. The first phase, providing 800 extra graves, is set to be completed in March 2006.
An exhibition with more detail of the plans, to be displayed at Aylestone Park Football Club on Monday.
The council has written to residents in Dorset Avenue, bordering the cemetery, to let them know work is due to start.
The £380,000 work includes landscaping, water supply, drainage, seating areas and boundary fencing and will provide burial space for three years.
Councillor John Mugglestone, cabinet lead for regeneration and culture said: "This extension has been part of the long-term plan for the city for many years, and local people are aware of that.
"However, we have now reached the point where we need to start developing those plans to ensure we have enough burial spaces.
"We have worked closely with the football club, which uses part of the land at present, to relocate those pitches to improved facilities at Linwood playing fields".