The council is considering options for future commercial, leisure and retail use, as well as for house and civic buildings.
The feasibility study will mostly take in the town centre area bordered by High Street, Buccleuch Street and South Street.
The aim of the study will examine the potential for boosting economic activity, investment and job opportunities by providing new or refurbished shops, offices and other workplaces, leisure facilities, housing and public spaces.
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The research will also look at including new, more efficient and cost effective council headquarters, while freeing up older inefficient council-owned offices in various other locations.
The possibility of developing a modern replacement library and new arts centre, with the potential for flexible community use, will also be considered.
The consultation phase is expected to take several months and will help determine the financial feasibility of the project as well as influencing how the regenerated town centre might look.
Council Leader Catherine Johnstone said: "Although we are at a very early stage in the process, this feasibility study marks the start of an exciting new future for Dalkeith town centre."
(LM)
