Regatta Point will be revamped to include a new restaurant and cafe, with the National Capital Authority calling for tenders to find an operator for the prominent site on the shores of Lake Burley Griffin.
The National Capital Exhibition space and visitors centre will remain open while the site is expanded.
ACT Senator Zed Seselja said in a statement on Saturday the work would help the site meet the needs of Canberra's growing tourist and local gourmet markets.
"Regatta Point offers uninterrupted views across our beautiful Lake Burley Griffin to the parliamentary zone and this redevelopment offers the hospitality operator the opportunity to create an iconic venue," he said
Redevelopment is expected to begin in mid-November.
The National Capital Authority is tendering for a hospitality operator to run the restaurant and a new function space, starting in July 2020. Tenders close on November 15.
The authority is also seeking a temporary provider for the site during the redevelopment period, to provide coffee and snacks from a "semi-transportable structure".
That operator would start serving on November 15 and operate until September 2020.
The centre was opened in 1963 and was intended to be a temporary viewing platform for people to see Lake Burley Griffin under construction. It has been extended significantly since.
In 2016, the Canberra region visitors' centre was moved from Northbourne Avenue to the site as part of an earlier expansion.