A £600,000 boost to Leicester's historic market is "to be supported wholeheartedly" as part of a wider scheme to improve the landmark.

Last week, Leicester City Council announced the first phase of a multi-million-pound plan to transform Leicester's market.

The six-month investment programme into the market is to be used to remove stalls to the right of the Corn Exchange, improve signage and generally clean up the area.

It comes as the authority seeks £9 million of European funding to knock down the indoor area, build new stalls and replace the outdoor canopy over the 700-year-old market. Last night, the £600,000 programme was discussed at the authority's performance and value for money select committee.

Committee member Councillor Ross Willmott announced plans to spend millions on the market when he was leader of the council earlier in the year.

He said: "I would want to be reassured that this £600,000 is part of the grander scheme, and would not be scrapped if we did not get the larger funding. I support this wholeheartedly and hope we get the rest of the money."

The authority is next due to meet with EU representatives in September to discuss its £9 million bid, and if successful, it hopes to start work on the plans in the next 12 months.

The £600,000 will come from existing council reserves and will also be used to continue the council's effort to reduce the smell of rotting produce around the market place.

In March, a bin lorry which used to be at the market all day, began arriving twice a day after complaints it made the area look and smell unpleasant. Now more improvements to waste collection will set the council back £15,000.

Dawn Alfonso, of the Leicester Market Traders' Federation, is pleased with the investment.

She said: "For the last couple of months we've also had a compactor put in which crushes down all the cardboard boxes. With the rubbish not being squeezed into one lorry then you don't get the vile smell you used to, with all the juices from the fruit and veg running on to the pavement. It will be good to see more done on the market and it will be an improvement if they replace parts of the canopy."

If £9 million was granted then the council would have to contribute £1.2 million of its own money.

Councillor Paul Westley, who is in charge of the market's future, announced previously that the EU money was a chance for the city to improve itself. He said: "Leicester market has to change, it can't stand still. This is a golden opportunity to bring people into the market and secure its future."

At the moment the market makes around £500,000 a year profit for the council – which is about £250,000 short of its target profit. Removing parts of the canopy and buying new stalls near the Corn Exchange is likely to cost around £495,000 out of the £600,000. Cleaning work and new signs will cost £40,000 and the rest will go on waste works. The £600,000 investment proposals will go before cabinet members for approval on Monday.