A major modernisation and refurbishment project is set to start at the Scandinavian influenced 1930s building.
The investment project includes a new local office plus modern, flexible accommodation in the rest of the grade B-listed building.
It will close for business during the work and is scheduled to reopen in autumn next year.
Kirkcaldy area committee chairman Neil Crooks said: ”The town houserefurbishment is part of an ongoingprogramme within Fife Council to reduce our carbon footprint, reduce energy costs and reduce revenue expenditure on buildings maintenance, concentrating staff into fewer buildings as a cost and efficiency measure.
”When the council embarked on this massive programme across the region, it was in pursuit of a significant budget saving and it is far better to reduce buildings than reduce staffing, which is the council’s other major revenue cost.”
From next Monday local office services will be available at Forth House inAbbotshall Road; registration services for births, deaths, marriages and civil partnerships will move to Hunter House in Hunter Street from August 21.
Councillors will have temporary office space in Forth House and they can also be contacted on 08451 55 55 55 ext 471699 or by emailing cllr.firstname.lastname@fife.gov.uk.
The Kirkcaldy area committee meetings will take place in Forth House from August 29.
Other services are to remain in their offices in the centre of town just now but they too are set to move into the modernised town house in early 2014.
The town house will become the council hub for Kirkcaldy, where members of the public will be able to access most services under one roof.
The local office services delivered from Park Road and Beauly Crescent will remain unchanged under these proposals.
Mr Crooks added: ”At the end of the day, the town house will be transformed into a modern workplace with access to council services across a wider range being available in a single visit.
”I certainly welcome the investment and am advised that the costs will be recovered quite quickly through reduced revenue demands, which is a necessity as local government budgets are being cut severely year on year.”
Work started on the current town house in 1937, from a competition-winning design by architects David Carr and William Howard, of Edinburgh.
Only the foundations had been put in place before construction was interrupted by the Second World War and work resumed on the building in 1950 and was completed in two separate phases between 1953 and 1956.
It has served as the headquarters ofKirkcaldy Town Council and then Kirkcaldy District Council.
Meanwhile, work on a similar £1.2m revamp of the city chambers in Dunfermline is on schedule.
Work on the grade A-listed building, which, it is hoped, will transform it into a customer services centre, got under way earlier this year.
The chambers were built on the site of a townhouse of 1771.
This, in turn, replaced the 17th-century town house, which was demolished to make way for 18th-century improvements and the creation of Bridge Street.
The building constructed between 1875 and 1879 by James C Walker, who also designed the first Carnegie Library closed to the public last February.
It will be ready to welcome the public this November and will offer a wider range of services, including the town centre local office, which is currently on Walmer Drive.
It is estimated an additional 30,000 visitors a year will visit the city chambers.
While it is opened, external work will continue.
This is due to begin in October and run through until next April.