For the last 20 number of years the car park, located on China Street, has been run in partnership with Parksafe Systems Ltd.
The company has now decided to surrender the agreement, meaning the city council will take over its operation from November 29.
As a result of the change in management, there will be a number of changes. The current 'smart card' ticketing system will be replaced by pay and display machines and tariffs and permits will be changed to be in line with the council’s other car parks. It will also be renamed and known as the Castle Car Park.
The biggest change will see the current 24/7 opening times reduced to 8am-6pm.
Councillor Gina Dowding, cabinet member with responsibility for strategic planning and place making, said: “Parksafe has served us well in the provision of safe parking in Lancaster over the last 20 years but this now marks a new chapter and an opportunity to breathe new life into the car park.
“For example, one of the council’s ambitions is to add many more charging points for electric vehicles and by taking over this car park we now have a greater range of options available to us in terms of where they could be installed.
“For now, the major difference will be that the car park will no longer be open 24/7 and we are contacting those permit holders that this affects with details of the alternatives that are available.”