The area, known as urban square, will be built on the corner of Wodonga’s realigned Elgin Boulevard and High Street.

Work on the $2.3 million project will begin before Christmas.

Traffic lights at the Elgin Boulevard-High Street intersection are in place and operating.

Work on the urban square will start when final designs are completed.

Places Victoria land development and housing manager Joanne Wandel said work, including landscaping, would take about six months to complete.

She said the square would give central Wodonga a fine new meeting and play space.

“We are finalising the design work for the square with the Wodonga Council,” she said.

Ms Wandel said Places Victoria and the council would name the space after consulting the community and the city’s advisory place names committee.

The only business now at Junction Place is Broadgauge restaurant, in the old station building.

Ms Wandel said the new square would have water features, cleaned-up rail infrastructure and play spaces, in accordance with the design concepts released last year.

“Key feedback from the consultation was the desire for bigger open spaces in Wodonga,” she said.

“We believe important feedback has been incorporated into the square’s design.”

A former Thai restaurant building and whitegoods outlet will be demolished before work starts.

The council is providing $600,000 for the square, which is one of three public areas on the former railway land.

The council’s chief executive officer Patience Harrington said she was looking forward to this “piece of the puzzle” in revitalising the city being finished in the next year.