Once the clock is fully repaired it will be reinstalled on the outside of the building – a former town hall and cinema.
Due the property’s category B listing, consultation with Historic Environment Scotland will be required to ensure any works have the necessary consents.
At least one side of the street will need to be shut for a number of days while the clock is put back in place which is expected to cause traffic delays in the area.
Mandy Watt, the council’s finance and resources convener, said: “The return of Porty’s historic burgh clock will be welcome news to many.
“It has been in storage for many years and it’s time we got on with restoring it and putting it back in its rightful place.”