Being undertaken on behalf of crown company Otakaro Limited, the work will involve streetscaping, landscaping, furniture installation, drainage, lighting, laying 150,000 new pavers and building a new punt stop on the river.
The historic Bowker Fountain, which has not worked properly for decades, will also be fully restored to its former illuminated glory.
In officially launching the restoration project, Associate Minister for Christchurch Regeneration, Nicky Wagner, said that keeping the existing layout and using high-quality materials and lighting would ensure Victoria Square complements the wider Avon River Precinct, while still retaining its iconic look and feel.
"The restoration plan also retains existing features such as the Queen Victoria and Captain Cook statues, as well as the floral clock. The popular site's significance to Ngai Tahu will be recognised through a new artwork - Mana Motuhake," Ms Wagner said.