A $14.6 million upgrade of the small streets and laneways linking the Adelaide Central Market to the Riverbank is expected to begin later this year.

The upgrade will include new intersections, paving, lighting, trees, landscaping, street furniture, and public art throughout the corridor, which the State Government estimates is used by 15,000 people a day.

A map of the proposed laneways connecting the Central Market to the Riverbank. ( Supplied: SA Government )

The corridor includes Bank Street, Leigh Street, Topham Mall, Bentham Street, and Pitt Street.

The project will be jointly financed, with $7.3 million to be committed in next month's state budget, and matching funding to be provided by the Adelaide City Council.

The partnership follows on from a successful demonstration project between the Council and Government, which saw Leigh Street closed to traffic in 2012.

A similar demonstration project which introduced temporary 'parklets' in Bank Street proved less successful, with complaints the wooden benches had become a haven for drunks and was often strewn with rubbish.

Treasurer Tom Koutsantonis said the upgrade would build on the State Government's agenda for city vibrancy.

"There has been an incredible transformation on Leigh Street and Peel Street over the past three years and we want that excitement and activity extended all the way from the Central Markets to the Riverbank," he said.

"This project will add to the huge amount of public and private investment in the city in recent years in terms of infrastructure developments, new hotels and apartment complexes."

Lord Mayor Martin Haese said the project was expected to spark further spending from businesses lining the pedestrian and cycling route.

"This investment has the potential to realise up to $70 million in economic activity and utilise local procurement to create new jobs," he said.