The existing "drive through" bus station and its office building will be completely demolished over the next few months.
In its place will be a single building where all buses will stand at an angle to the covered central concourse.
The concourse, built across the front of the Airedale shopping centre, will allow buses to drive in, stand at an angle to collect passengers, then reverse out.
The layout, similar to that at Leeds and Dewsbury bus stations, aims to minimise conflict between pedestrians and vehicles.
Road alterations are being carried out at both the Bow Street/North Street and Lawkholme Crescent/Cavendish Street junctions to ensure the new system works.
Metro says the concourse itself will be built to the highest standards of passenger comfort, safety and security.
It will include new toilets, a travel centre, shops, and improved information and signs such as electronic departure information.
New CCTV cameras will be linked into the system being introduced by Metro at almost all West Yorkshire bus stations.
The cameras will be monitored 24 hours a day, seven days a week, by qualified staff in a central control room in Leeds.
l Improvement work on Keighley bus station must be finished before the Christmas shopping season starts.
If this is not possible the work should be stopped for about two months so it does not interfere with business.
That is the view of Keighley Town Centre Management Group, which is made up of traders, council representatives and other local organisations.
The group will send a letter to all parties involved in the bus station modernisation to stress the importance of work being completed by mid-November.
Group chairman Mike Millbank, manager of the Airedale shopping centre, recently met architects and contractors to discuss concerns.
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