The Market Arcade is built of brick with round-headed shop fronts and is linked to the Market Hall with its Victorian cast-iron and wooden-domed roof, which is currently in need of maintenance to repair leaks.
Work is set to begin later this month at a cost of £791,000 and will take six months to complete.
The announcement has caused controversy however, as traders fear it will cause massive disruption in the run-up to Christmas, which is traditionally their busiest time of the year.
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Thirty-four market proprietors met with Highland Council officials last week to discuss the plans.
They expressed "dismay and disgust" that the local authority was going ahead with the project, branding the council "uncaring and cavalier."
Chairman of the traders association, Mark Burnside, said the recent meeting and discussion of plans showed the extent of the upheaval traders will face over the coming months.
Mr Burnside commented: "The plans were very clear and concise about the disruption to Academy Street and the interior of the market."
The council has agreed to set up a working group during the works in a bid to keep businesses fully informed of the progress.
City provost Jimmy Gray was not present at the meeting despite being invited by traders.
Inverness city manager David Haas said Councillor Gray was not present as it was about operational matters, namely scaffolding issues.
(JG/CD)
