The contract awarded after a competitive tendering process and worth up to £3.9m over the next six years, will see Capita manage all aspects of the building's development including managing the design and construction phases.

The library will be developed on land adjoining the world-renowned Birmingham Repertory Theatre (The REP), with the library and theatre joining together and sharing a number of facilities to create a unique centre for knowledge, learning and culture.

The land now occupied by The REP's workshop and conference facilities will be redeveloped to create a new medium sized auditorium and related facilities for shared use. There will be ready access between the library and theatre, with shared cafe and restaurant facilities.

The need for a new library was identified when it became clear that the existing Central Library, in Chamberlain Square, was no longer fit-for-purpose and in desperate need of modernisation.

Central Library which opened in 1973, is the busiest public library in Britain, attracting more than 1.5 million visitors per year. However over recent years it has become increasingly costly to maintain. The design of the building is unsuited to modern day needs. It is inflexible and very difficult to adapt to new technology and patterns of use for learning, information and culture.

The new library integrated with The REP will deliver a state-of-the-art new facility, delivering a major boost to Birmingham's cultural offer and benefiting local people for generations to come.

David Robertson, project director for Capita Symonds, said: "We are delighted to be appointed as Project and Cost Managers on this prestigious project and we look forward to continuing our relationship with Birmingham City Council and the Repertory Theatre and to playing our part in the delivery process of this exciting development for Birmingham.

We have been encouraged and excited by the vision and commitment that already surround this project and, although there will undoubtedly be many challenges along the way, we are confident that with the continued enthusiasm and commitment of an experienced and professional team the project will be a real success for Birmingham and one that many people will be able to share in, and benefit from."

The new building is expected to be built and operational by 2013.