A new car park in the city centre near the train station will be ready to open in September.
As previously reported, the 46-space parking facility makes use of the former Oxford Hall site, which was demolished earlier in the year.
The new car park will be run for at least three years after the City of Lincoln Council made a deal with the landowners, Lincolnshire Co-op.
After this point, the land will be used as part of the Lindongate development.
Rod Williamson, City Services Team Leader at the City Council: “To be able to introduce more car parking spaces into the city in such a prime location is great news for motorists.
“We know over the next few years the number of people coming to the city to shop, live and visit is going to increase so having enough spaces to cater for them is vital.
“This new car park will also benefit from some of our excellent discounts such as 25% reduction on all tariffs using the PayByPhone on Mondays.”
The council hopes this will help the issues currently surrounding the delayed completion of Lucy Tower Car Park.
At present, Lucy Tower remains closed while consultants revise specifications, plans and costs, but contractors hope to be back in the car park by September, with completion ahead of the Christmas Market in early December.