The work will take place in early 2015, and will involve the temporary removal of human remains and memorials at the site.
It is understood a section of the wall has a "significant" inward lean. In order to repair this and stop further instability which could cause the structure to collapse, the council will demolish the wall and then rebuild it using the existing stone. The pavement and near lane of Abbotshall Road will be closed for the duration of the project, with diversions in place for motorists.
The local authority has said it will be responsible for undertaking the work, with assistance from a specialist exhumation contractor.
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Work is expected to commence in January 2015, and take around 10 weeks to complete.
Councillor Judy Hamilton, Executive Spokesperson for Housing & Building Services, explained: "Officers are working hard to ensure the remains will be removed to allow the work to be carried out and replaced in their original locations in as sensitive a manner as possible. Measures will also be taken to limit disruption to the graveyard.
"Problems with this section of wall are historic and the movement in the wall has continued to progress. Engineering staff from the council's Property Services have been monitoring the condition of the wall to ensure that there is no danger to the public whilst we put plans in place for the repair work."
Reverend Rosemary Frew, Minister of Abbotshall Church, added: "Our Church Property Convener, Mr Mike Petrie, and I have been working with representatives of Fife Council for some time now.
"We're grateful to the Council for the careful and sensitive way in which this work is to be carried out. Upon completion I will conduct a service of re-interment."
Fife Council has said it will now make an application to the Sheriff Court at Kirkcaldy for appropriate permission to allow the exhumation work to be carried out.
(JP/MH)
