The local contractor starts work later this month with the project due to complete in Spring 2017.
The work focuses on redeveloping the southern end of the shopping centre, creating a new terrace level overlooking the Cathedral with eight new restaurants, a reconfigured Travelodge hotel, additional retail space, gym, coffee shop and new public square.
A public square is being jointly funded with Worcestershire County Council and Worcester City Council.
Des O’Neill, Managing Director at Speller Metcalfe, said: “This is a fantastic scheme for Worcester, which will regenerate the existing Cathedral Plaza shopping centre and draw visitors into the local area.
“Speller Metcalfe is delighted to be a part of such an important scheme, and as a Worcestershire contractor it is important to us that the project will provide opportunities for local employment.”
Salmon Harvester Opportunity Fund is advised by DMR, Hartnell Taylor Cook and Johnson Fellows.