Salta Properties and Medich Corporation, who jointly own the 45-year-old fresh food market, will begin work on upgrading the fruit, vegetable, meat, poultry and fish halls in October.

The upgrade is the first stage of a planned $550 million makeover of the thriving, multicultural market that includes plans for 1500 homes in towers up to 28 storeys high.

The project's controversial second and third stages, which include multi-storey car parks and high-rise buildings, have stalled in the planning process after they were rejected by the local council.

Salta's director Sam Tarascio said the market had remained largely untouched since the 1970s and was due for an upgrade.

"A key focus of the works is the introduction of a range of environmental and sustainability initiatives," he said.

They include solar panels on the roof, onsite waste treatment, recycling improvements, smart building technologies, a children's play area and expansion of the Preston Artist Market, dubbed PAM Lane.

Manny Spiteri, a leasing advocate representing the market's 150 traders, described the work as a " facelift to placate the council".

Mr Spiteri said the market's owners had failed to properly consult with market traders.

"You're the first one to tell us. Wouldn't you think they would consult the traders?" he said. "We don't know when it's going to happen, how it's going to happen."

The market's owners face stiff opposition from local residents, with a push by Darebin Progress Association for a public meeting to voice concerns.

"We don't want it sanitised. We want the amenity of the market, it's multicultural aspects preserved," organisation secretary Marion Harper said. "It's a cultural hub. It's a way of life that's disappearing."

Passionate shoppers, protective of Melbourne's old-style traditional undercover markets, have levelled similar criticism at the City of Melbourne's multi-million dollar makeover of the Queen Victoria Market.

Mr Tarascio said traders knew the changes were coming and would be briefed next week.

The Preston Market will remain open while it undergoes the revamp which has been designed by NH Architecture and Breathe Architecture, he said.