Work on the 114-year-old courthouse, vacated for years due to earthquake concerns, is expected to be completed by the end of 2017.
The Dunedin courthouse will get a $20m refit which is expected strengthen the building and give it a technology and security upgrade.
Justice and Courts Minister Amy Adams has confirmed that the budget was approved for the renovation of the prominent building and is included in Budget 2016.
Adams said that the building, which will also get restoration work done, is historic and one of the most notable buildings in New Zealand.
The Cabinet decided to modernise the courthouse at its final meeting in 2015, the Justice Minister said.
The Stuart St courthouse was closed in 2011 because of earthquake related risks. Six other courts including Rangiora, Oamaru and Balclutha were closed for the same reason.
Initially, work on the Dunedin courthouse was estimated to be $15m, but was later revised to $20m.
“We always knew it was going to be a big and expensive project,” the Justice and Courts Minister said.
“It didn't take me long when I came down and saw the building to understand [that it is] a critical piece of the historic fabric, not only of Dunedin and Otago, but actually I think, New Zealand,” Adams said.
The official maintained that while she was initially doubtful of how much the project would cost, she was “always committed to seeing this work done.”
