Tupelo's NEMS Daily Journal has reported that the US$5.5m (£3.5m) project is to include a new theatre with a cafe, reception area and an amphitheatre.

Around US$2.8m (£1.8m) of the funding is from a US$400m (£259m) bond package, with the city council agreeing to fund the required 20 percent local match of about US$560,000 (£358,200). It hopes that in-kind services and public and private donations will offset this, with the Tupelo Convention and Visitors Bureau having already included US$150,000 (£96,000) in its proposed 2011 budget and the The Elvis Presley Memorial Foundation itself verbally committing to raising US$100,000 (£64,000).

Dick Guyton, executive director of Elvis Presley Birthplace said: "This is a very exciting time. Our vision is to grow the number and variety of attractions at the Birthplace to enhance the experience of our guests."

The new multipurpose theatre and event space is the first of several expansions to the site. Completion of Phase One, which includes the theatre, is scheduled for late 2011.

Haizlip, which joins the project design team of Design 500 and Richie Smith Associates, has previously designed the Memphis Botanic Garden's My Big Backyard, the University Centre Multi-purpose Theatre at the University of Memphis and additions to the Louisiana Arts and Science Museum in Baton Rouge.