Project contractors Robertson Construction Tayside will be on site to carry out enabling works, which will include stripping out existing buildings and preparing to demolish sections to make way for the new extension.

Gary Bushnell, chief executive, hub East Central Scotland, said: “It is great to see work getting underway on site and we look forward to handing over a high quality state of the art building in 2017 that will continue to play such an important role in Perth’s cultural programmes.”

Magnus Linklater, chair of Horsecross Arts, the creative organisation behind Perth Concert Hall and Perth Theatre said: “It has been a long wait to see construction work starting on our new theatre, but believe me an awful lot has been happening in the background to prepare for this moment.

“Now, as the building begins to take shape, we will see great strides being taken towards the completion of an exciting project — a new theatre, with its historic auditorium lovingly restored, newly designed facilities for a 21st century audience and community participants, a place where we will see great drama being performed for and by all ages.

“We are on schedule to reopen in late 2017, on budget; and our team is working hard to secure the remaining funds to make it one of Scotland’s great theatres. We hope the people of Perth will join with us in ensuring that this is a place we can all be proud of.”

Council leader and project board chair, Councillor Ian Miller, said: “The refurbishment of Perth Theatre is a key element of our plans to create a vibrant cultural sector in the City of Perth. I am hugely excited about the prospect of having a state of the art theatre complementing our existing facilities in the city, with Perth Concert Hall providing a fantastic multi-purpose venue for concerts, conferences, shows and many other diverse events drawing performers and organisations from around Scotland, the UK and across the globe.”

Kevin Dickson, regional managing director of Robertson Tayside, added: “Work getting underway on site marks an important milestone in the redevelopment of Perth Theatre. “We are delighted to be transforming this historic building, restoring it to its former glory while offering modern, dynamic facilities for performers and theatre-goers to enjoy.”

Perth Theatre has a long history of artistic innovation and excellence having been at the heart of cultural life in Perth for over a century. The transformation of the theatre will restore and redevelop one of Scotland’s oldest and best loved theatres for generations to come. The B listed Edwardian auditorium will be restored to its former glory and a new 200 seat studio theatre will be created.

The newly transformed venue will have increased workshop spaces for creative learning and community projects including the thriving Perth Youth Theatre which turns 50 this year.

Due to be completed late 2017, the High Street entrance to the building will be retained, with a new frontage created on Mill Street, improving access and facilities for visitors.