The £2 million project, which will attempt to make the town more attractive to holidaymakers, is being backed by a grant from Yorkshire Forward.
The stated ambition of the project is to give the town 'one of the best seafronts in Europe'.
The proposals include a series of 'loafer seats' designed to accommodate visitors to the harbour in the summer months but which 'read as beautiful sculptural objects when not used so intensively at other times'.
The scheme will also feature 'sparkling pavement surfaces' designed to reflect the sand on the town's nearby beaches.
Other elements will include a lighting scheme designed by Speirs and Major.
The scheme is due to start on site in early October 2006 with completion planned for March 2007.