Greater Anglia, which manages the station, will deliver the work, which includes a better concourse and more modern and spacious ticket hall.
An application for listed building consent is now being discussed with the local planning authority and consultation with station users will take place before the work starts. The aim is to start the work in late summer, with completion in mid-2014.
Brookgate is behind the CB1 development. The funding for the station improvements was released from the development of over 1,000 student units and forms a key element of regeneration benefits of CB1. The mixed-use development will deliver a number of additional public benefits including a 3,000 space cycle park and a new station square.
Richard Schofield, Network Rail route managing director, said: “Cambridge station is one of the busiest stations in the east of England and this investment will make a positive difference for passengers, particularly as the number of people using the railway continues to grow. These improvements will be a further boost to Cambridge's economy bringing benefits to passengers and the wider community."
Sven Töpel, chief executive of Brookgate, said: “A key part of our vision for CB1 is the delivery of significant public benefits to the city, so we are pleased to have made the final payment to Network Rail and Greater Anglia for them to progress the station improvement scheme. An improved station will make a real difference to passengers and will help to support Cambridge’s continued growth.”
The investment to provide a better concourse and ticket hall complements a £16.7m investment by Network Rail in 2011 to build a new island platform at the station, which meant 12-carriage trains were introduced for the first time between Cambridge and Liverpool Street.