North Melbourne's $16 million redevelopment of their Arden Street base is expected to start in two months after being given the green light from the Melbourne City Council.

The AFL club said construction work would get underway in early February, after they completed a tender process to appoint a builder.

The redevelopment will include new cutting edge facilities for players and club officials, as well as a multicultural education centre for community use.

"This announcement has been a long time coming and all North Melbourne people should be extremely excited about the redevelopment getting the go-ahead," Kangaroos chief executive Eugene Arocca said.

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