Colin Barnett has announced a $2 million revamp of Perth's Chinatown precinct in time for 2014 Chinese New Year celebrations.

The state government funding boost to revitalise it as a vibrant cultural destination, was announced on Sunday.

The WA Premier said the first phase included expanding celebrations into Northbridge's Chinatown laneways with a new entry of lanterns and road lighting, helped by a $50,000 grant to the Chung Wah Association.

"Chinatown is a popular location for people of all ages and an important business precinct in Northbridge that has been rundown for some time," Mr Barnett said.

Community groups such as the Chung Wah Association, which has represented the WA Chinese community over the last century, has previously called upon authorities to clean up the Northbridge hub.