The former St Luke's Hospital car park, left neglected since St Luke's closed down in 2008, will be rehabilitated following a devolution agreement between the government and Pieta' local council.
This will mean that usage of the facility, which can take up to 260 vehicles, will once again be at a cost. People currently use it free of charge.
The three-year devolution agreement was announced this morning during a visit by Parliamentary Secretary for Planning Michael Falzon.
Pieta' mayor Keith Tanti said 50 parking spaces will be reserved for Pieta residents who will be able to keep using this facility at no cost.
The agreement, he said, would also mean an additional stream of revenue for the council.
Mr Caruana said a decision about fees would be made in due course following the adjudication of the tender for the management of the facility.
The operator will be also responsible for the maintenance and upkeep of the car park.