Works began earlier this week on the Northumberland County Council project to create more parking spaces in Ponteland.
When complete, an additional 60 bays, including an extra seven disabled parking bays, will be available in the area between Merton Way and Meadowfield.
The capacity will increase from 48 to 108 spaces.
The £325,000 scheme is expected to take up to ten weeks and will involve closing the existing car park, either in part or wholly, for the duration of the works.
Ponteland North county councillor Richard Dodd, who is contributing £56,000 from his members small scheme fund towards the project, said: “This is a very well used car park, but often gets full quickly.
“With capacity more than doubling, this should resolve some of the issues we have in this area and provide a car parking facility that will benefit shoppers, residents and businesses for years to come.”
During the project, Merton Way will be open to through traffic during the first two stages, but closed to through traffic for the final stage.
A diversion route will be clearly signed.
Coun Glen Sanderson, cabinet member for environment and local services, said: “Ponteland – like many of our towns and villages – needs more car parking and this scheme will create much-needed capacity, as well as providing a boost for local traders.
“Unfortunately, as with any town centre works, there will be some disruption to residents and businesses during the works and we will, of course, endeavour to minimise this as much as possible.
“We’ve also ensured local schools, councillors, residents and businesses have been given advance warning of the works taking place.”