A large-scale effort to develop and modernise the Cornhill Quarter will fund refurbishments for Sign of the Fish.
The business will receive help to build outdoor seating.
Owner of the fish and chip shop, Chaz Hundal, said he was delighted at the investment in the area.
“It’s exciting! It’s really good for Sincil Street. It’s going to be great for Lincoln to have Sincil Street back to its former glory.
“There’s going to be some disruption. I think I’m going to have to close for about four to five weeks, particularly when they start replacing the roof, because it just won’t be safe.”
Mr Hundal told The Linc that although Sign of the Fish was started in 1980 by August Ericson, the history of the shop actually goes back to the end of the 19th century.
42 Sincil Street has been a fish-fryer since 1899, which means that it’s one of the oldest shops still serving traditional fish and chips in the country.
Mr Hundal said the building’s past will be considered in the redevelopment.
“Because of the history of it and what we know, I don’t want to go super modern with it,” he explained. “We’ll do a refit, but we want to keep the old style.”
The refurbishment is being completed in three phases, with Sign of the Fish being in the final step.
The investment in the area, led by Lincolnshire Co-Op and Lincoln City Council, has already seen The Botanist, Everyman Cinema and Doughnotts come to Lincoln, as well as the creation of 120 full-time jobs.