Doncaster Council gave the scheme, for a site at Waterdale next to Sir Nigel Gresley Square, planning permission last year.
It had originally been suggested work could start last November and completed late this year, but the project was delayed due to legal work on parts of the development.
The the cinema will be operated by the chain Savoy, which already operates sites in Nottingham and Worksop.
Assistant director of development at Doncaster Council, Scott Cardwell, told town centre businesses at the Doncaster Town Centre Business Forum that work will now start on the project this week.
He said: “We’re starting on site this week, and the cinema will be open in April next year. There will be a cinema and four restaurant units.”
The six screen, 1,600 seat cinema and restaurants development was originally due to be opened in spring 2016.
The plan to spend £10 million of local authority money on a new cinema and restaurants was been approved in July last year
Developer Muse was due to build the cinema back in 2014, but the private firm 'couldn't make it work financially' and the project stalled.
The council stepped in to act as landowner, funder, developer and landlord to the completed development. The money is coming from the 'investment and modernisation fund'.
Cabinet members approved the procurement and construction of the development with a lease in place with the cinema operator but without any restaurant operators in place.
Once completed, council bosses estimate the development will generate revenue, 100 jobs and £530,000 in business rates from the scheme.
The development will also receive £635,000 from the Sheffield City Region.
Coun Bill Mordue, cabinet member for business, skills and economic developement, said last year: “This project, I believe will contribute to the regeneration of the area and the wider town centre along with the University Technical College, library and art gallery brings a critical mass to this area and I think this will make it very successful.”
The last cinema to operate in the town centre was the Odeon at Hall Gate, which closed in 2008 and was demolished in 2009.