Most of the money will be spent on redeveloping the John Charles Stand area.
The directors box is to move nearer the halfway line and corporate seating will be improved to attract new, lucrative business for the club.
A new facility for supporters, the Lucas Radebe Suite, will also be created in honour of the club's long-serving former skipper.
The East Stand will also benefit from a cash injection and a summer face-lift.
Aside from the corporate areas and the new lounge, facilities will also be improved on the concourse areas of the ground.
Chief executive officer Shaun Harvey said: "The facelift will benefit everyone, but it isn't just about matchdays.After years without investment it is beginning to have an effect on the non-matchday business we generate.
"The overhaul will be the key to ensuring our facilities remain well used in what is a very competitive market."
Harvey has already stated that season ticket sales and corporate investment is crucial as the club looks to re-emerge from the wilderness after three years of financial upheaval.
Further work is also being undertaken on improving the playing surface. Within 24 hours of last weekend's final Coca-Cola Championship clash with Rotherham, the Elland Road groundstaff were working on improving the drainage of the pitch.