Rugby Borough Council has appointed Leamington Spa-based O'Brien Contractors Limited to carry out the site works, with the new Rainsbrook Cemetery set to include 3,500 grave plots.
Work on the new cemetery comes a decade after Rainsbrook Crematorium first opened its doors.
A cemetery was included in the original plans for the crematorium, but the council decided to postpone work on the cemetery until the council's cemeteries at Clifton Road, Croop Hill, Watts Lane and Whinfield were nearer to full capacity.
The site works on the cemetery looks set to start on Monday (13 May) and be completed by September, weather permitting.
During the works, visitors face restricted access to the site. However, access to the rest of the crematorium grounds and Diamond Wood remains open.
Cllr Derek Poole, Rugby Borough Council portfolio holder for regulation and safety, said: "A new cemetery for the borough was always part of our plans for the Rainsbrook site and by working with O'Brien Contractors Limited to deliver the project, we have partnered with a company which has considerable experience of building new cemeteries.
"We aim to minimise the disruption to visitors to the crematorium grounds and Diamond Wood during the site works, but appreciate everyone's patience and understanding while we build a new cemetery to serve the borough for the future."
Rainsbrook Crematorium was built by Rugby Borough Council and Daventry District Council, and opened in April 2014.
Daventry District Council became part of the West Northamptonshire Council when it was formed in 2021.
Rugby Borough Council has sole responsibility for the operation of Rainsbrook Cemetery, with all burial plots owned by the council.
For more information about Rainsbrook Cemetery and Crematorium, visit www.rainsbrookcrematorium.co.uk.