A new £25m visitor centre is set to be built at Stonehenge in Wiltshire after a scheme to revitalise the World Heritage Site was provisionally given the green light by the government.

Work will now commence on drawing up a planning application for the new centre, which is to be located at Airman's Corner following recommendations by the Stonehenge Project Board - chaired by culture minister Barbara Follett and transport minister Andrew Adonis.

Plans for the revamp of the Stonehenge site also include the re-routing of the A344, which currently runs close to the stones, although a proposed 2.1km (1.3-mile) tunnel to house the A303 does not feature after the scheme was deemed to be too expensive in 2007.

Funding for the improvements will come from a range of public and private sector organisations, including English Heritage, the Highways Agency, the DCMS and the Department for Transport. An application for Heritage Lottery Fund support is also expected to be submitted.

Follett said: "Stonehenge is our most important and well recognised prehistoric site and, as such, is absolutely at the heart of our national history and heritage. Everyone agrees, however, that the way it is presented to visitors is far short of ideal.

"Consensus on how to improve visitor facilities has eluded stakeholders for far too long, and so I am delighted that we now have plans to move forward. There is still a long way to go, of course, but we now have to get on with making it happen."

Both English Heritage and the National Trust have welcomed the decision. English Heritage chair Sir Barry Cunliffe said: "Our vision for Stonehenge has always been a simple one: to restore a sense of dignity and wonder to its setting, and provide visitors with a really high quality experience. I believe the plans will do this, and significantly improve what we have there at present."