Saltergate multi-storey car park in Chesterfield will close at the weekend.
Chesterfield Borough Council will shut the facility at 7pm on Saturday ahead of work to demolish the building.
During the spring, Chesterfield Borough Council will submit a planning application to itself seeking permission to build a multi-million pound replacement car park which offers:
► Safe, secure, 24-hour parking;
► Better parking facilities for motorists;
► 531 parking spaces - more than what is currently offered;
► A more contemporary building.
When Saltergate multi-storey car park closes, motorists will be able to use alternative Chesterfield Borough Council-run car parks. For more information, visit www.chesterfield.gov.uk/saltergate
Councillor Terry Gilby, the borough council's cabinet member for growth, said: "The new car park is part of the wider Northern Gateway project.
"It will deliver a better quality multi-storey car park for shoppers, commuters and users of the hotel, restaurants, bar and gym that are currently being developed as part of the scheme to refurbish the former Co-op building."
Coun Gilby added: "We apologise for any inconvenience this causes motorists in the short-term but we believe it will be worth it once the improved 24-hour car park opens, which will increase the number of spaces available.
"We have sufficient spaces in our other car parks to cope with all the motorists who currently use Saltergate.
"We have already begun talking to customers to make them aware of alternative arrangements and will also be putting up signs across the town to direct people to their nearest convenient car park.
"The existing Saltergate car park is showing its age and does not provide the modern facilities that modern motorists need.
"We did look at renovating the existing one but the level of structural engineering work required meant that it made financial sense to build a replacement one instead."
A borough council spokesman added that the authority is in the final stages of procurement for a contractor to build the new Saltergate multi-storey car park.
"The date for the opening of the new multi-storey car park will be confirmed once the building designs have been prepared and planning permission has been granted," the spokesman added.