The project will be funded by Glasgow City Council, Scottish Rugby/Glasgow Warriors and sportscotland and, subject to contracts being finalised, work will commence later this month with completion expected ahead of the 2016/17 rugby season.
As well as a new synthetic playing surface, which will meet World Rugby guidelines, work will commence on improved athletics and rugby training facilities, a new event standard throws area and improvements to the outdoor running track.
While the pitch will be predominantly for use by the athletics and rugby communities, a programme for wider community use is being developed.
Glasgow CEO, Nathan Bombrys, said: "From next season we'll have an excellent surface all year round, to play the exciting brand of rugby we enjoy.
"A lot of work has gone on behind the scenes and this is fantastic news for everyone who uses the stadium."