Around £400,000 from central and local government has been allocated to improve the market area in a bid to bring more trade into the town.
Ward members have been waiting for Doncaster Council to say what they could afford to do.
They are now ready to arrange for work to begin after council officers told them last week they had enough money to move forward with their master plan.
The regeneration will involve removing rigid stalls from the outdoor market on York Square to create a public open space, which can be used for community entertainment such as drama performances. Pop-up stalls will then be erected in the square and along the High Street on market days.
There will also be improved lighting and signage, while planters along the High Street are to be taken out and replaced with new street furniture.
Councillor David Holland said: “All high streets are struggling in the recession. They also face the challenge of large out-of-town shopping areas and the growth of internet shopping. Town centres will have to adapt to survive.
“My colleagues and I are determined to do what we can to ensure Mexborough returns to the thriving town it used to be.”