The money will provide 'services fit for the 21st Century' in Welshpool

The building will be redesigned and have new lighting, a self-service terminal and automatic doors.

Research has found visits to libraries in Wales are increasing faster than anywhere else in the UK, but their poor state was described as a "turn-off".

The assembly government said the money would "provide services fit for the 21st Century".

Education, Culture and Welsh Language Minister Carwyn Jones said: "More people are now realising what a range of services our libraries offer: not only books, but DVDs, free internet access, training, book clubs, mother and toddler groups - the list is endless.

"This is why the number of library visits in Wales has increased by 21.8% in the last five years, more than any other part of the UK."

Powys county librarian Tudfil Adams said: "We are delighted to receive this assistance from the Welsh Assembly Government.

"Powys County Council has already embarked on a programme of library modernisation and this will allow us to make much greater progress."