Edinburgh's Chambers Street is to be overhauled in a £700,000 renovation project that will see the creation of a piazza to commemorate the 150th anniversary of the National Museum of Scotland (NMS).

Part of the plans will see the relocation of the existing statue of 19th century Lord Provost William Chambers and, perhaps more contentiously, the removal of up to 40 car park spaces that line the street.

With parking at a premium already in the city centre, councillors and museum chiefs are hoping Edinburgh residents will see the creation of a pedestrianised area, which will double as a performance space during the Edinburgh Fringe Festival, as a fair exchange.

The street will be closed this Sunday all day to allow the existing statue of William Chambers to be moved temporarily in preparation for the works.

Further to the renovation of Chambers Street, June will see the creation of ten new NMS galleries to showcase "internationally important collections of decorative art, design, fashion, science and technology".

Some £4.85m of funding has been provided by the Heritage Lottery Fund to aid the formation of the galleries, while NMS, Edinburgh City Council, Edinburgh University and a number of private donors will all contribute to the project.

NMS Director Gordon Rintoul has outlined his delight at the long-awaited plans, having previously complained that Scotland's premier museum had been "hemmed in by parking", with the iconic street no more than "a cut-through for drivers".

Dr Rintoul said: "All major cities have a quality public realm and the plans to redefine the use of the public space in Chambers Street will provide just that an appropriate setting in keeping with the prominence of the buildings and a much enhanced public space for people to meet and enjoy events.

"This space will create a new focus for cultural activity in association with the museum and our many partners."

Lesley Hinds, the councils transport leader, offered her support for the project: "We are pleased to working with National Museums Scotland and the university to help facilitate this project, which will vastly improve the area for visitors to the museum, as well as all those passing by.

"As we have found in other parts of the city, increasing and improving pedestrian space can have a really positive impact on its surroundings.

"I look forward to seeing the effects the widened and enhanced footway will have on the street's striking architecture as well as encouraging events and performances to the space throughout the year."