It will be 35 per cent larger than Ngā Toi Arts Te Papa, boasting 8m-high walls, which will allow Te Papa to host large sculptures and immersive art exhibits.
Te Papa estimated the renovations would cost $6 million.
Ellis said museum management hoped the renovations would put Te Papa on the map as a must-see destination for Kiwis.
"The new art space will enable us to show more of the national art collection, and create a world-class art experiences for our visitors."
Head of art Charlotte Davy said the design of gallery would provide artists greater flexibility.
"We are creating new opportunities for New Zealand artists, as we commission new works to feature in this stunning new gallery."
It would feature a dedicated area for works by New Zealand artists, including Charles Goldie, Rita Angus, Colin McCahon and Ralph Hotere.
Two level four exhibits - a 20th Century history gallery and a kids' discovery centre - would close for construction on Tuesday January 26.