Ballymote will be targeted under the Town Centre First policy.
The initiative aims to support the regeneration and redevelopment of rural towns and villages.
Sligo County Council and ATU will be working together on the project, which will survey all aspects of the town, such as heritage sites, vacancies, footfall, and more.
Local Fine Gael Cllr Gerard Mullaney says this will set out a blueprint for the future: