Liverpool's Central Library is set to undergo a major £50m refurbishment after Liverpool City Council (LCC) selected Inspire Partnership as its blue chip development partner.

The joint venture - which comprises York-based Shepherd Construction and London-based Amber Infrastructure - held off three other shortlisted firms for the Liverpool Central Library and Archive PFI Contract. Plans for the scheme, which is one of the UK's largest library developments, include the restoration of the library's 150-year-old Grade II-listed parts - including the facade and the Picton, Hornby and Oak Reading Rooms.

Five new floors boasting meeting rooms, a café and toilets will be created, the International Library reopened as a children's zone and a new repository with space for 20 years' worth of new archive space form part of the project. A new rooftop atrium and terrace overlooking St John's Gardens and a new home for the Liverpool Record Office will also be created as part of the proposals, which will see the building close in June 2010 in preparation for the start of construction work.

Joyce Little, head of Liverpool's Libraries and Information Services, said: "The two redevelopments that took place after the Second World War do not fit together very well and it is hard for people to find their way around the building. "This much-needed scheme gives us a once-in-a-lifetime opportunity to transform the building into one of the best libraries in the country."

LCC leader Warren Bradley added: "This scheme will enable us to upgrade and restore the much loved historic parts of the building, creating a first-class 21st century facility which is right at the heart of the city's cultural quarter." A full planning application is expected to be submitted on 23 November ahead of a four-week public consultation into the proposals, which is due to be held in December.