World heritage listing will be sought for Melbourne’s Queen Victoria Market following a massive renewal and extension of the famed site that could cost up to $250 million.

The Victorian government is giving the City of Melbourne land next to the market for it to partly develop and sell, with funds to be reinvested in the 135 year old market.

Proposed upgrades could include new open public spaces, event spaces, underground car parking and pedestrian access.

The works are also expected to create some 9000 new jobs at the market.

Premier Denis Napthine says the development will enable the market to expand and cater for growing visitors, which are expected to reach 17 million a year by 2031.

Lord Mayor Robert Doyle says the cost of the project could reach $250 million depending on the scope of the works decided on following community consultation.

Doyle says the traders have told him investment is needed or the market will wither.

He says the council will seek UNESCO World Heritage listing for the site, joining the city’s iconic Royal Exhibition Building on the list.

This would offer great reassurance to people eager to remember the market’s history, he says.

AAP