Lincoln's Bailgate is to receive a facelift after the county council and the Historic Lincoln Partnership secured a £1.18m grant.
Bailgate will be repaved in Yorkstone flags and a new landscaping scheme will be designed for the Roman Well and St Paul area.
Funding for the project includes contributions from East Midlands Tourism and the county council.
The work is due to start in early 2010, a county council spokesperson said.
Lincolnshire County Councillor Eddy Poll said: "Bailgate is probably the most important thoroughfare in uphill Lincoln.
"At one end of Bailgate is Newport Arch, originally the North Gate of the Roman walled city and the other end leads to Castle Hill.
"Bailgate's current paving is in poor condition and we want to create a high quality, historic streetscene in Bailgate to complement the many fine buildings."
A decision on a separate £15m bid to refurbish Lincoln Castle, by making it more accessible, is expected in February.