The plans will preserve and future-proof the Grade II listed building, restoring original design features, and introducing a new ground floor seated area for food.
The project would include a new 70-seat seating area on the ground floor, restoration of the roof, original windows and external elevations.
Plans are subject to funding being successfully secured and planning permission being granted. If successful, the works are currently expected to begin in Summer 2024 and take approximately two years to complete.
Cabinet Member for Investment & Development, Cllr Russell Goodway, said: “Customers have been visiting Cardiff Market for more than a century and our extensive renovation plans aim to ensure a viable and sustainable future for the building, preserve and enhance its heritage, and ensure it remains the bustling heart of the city centre for many years to come.”