An $8 million donation to the The State Library of Victoria means a new gallery for Melbourne.

The gift from the John and Myriam Wylie Foundation will fund the new space, dedicated to the history of Victoria, as well as upgrades to the Russell Street entrance (which has been closed since 2002) and a new cafe at the library’s eastern end.

The new gallery will occupy a heritage space that used to house the National Gallery of Victoria, according to The State Library.

“The Victoria Gallery will help bring to life the State Library’s many collections,” Premier Daniel Andrews says in a statement, showcasing “extraordinary treasures” that are currently in storage.

These developments are part of a major $88.1 million update for the library, which will include upgrades to every entrance and surrounding streetscapes by 2020.

Construction will begin in 2017.