The Future Programme will create dedicated learning centres, interpret the buildings in new ways and open up new spaces to the public.
The architectural practice Purcell has been appointed as lead designer for the Future Programme at Windsor Castle, while Burd Haward Architects will develop and deliver the project at the Palace of Holyroodhouse.
Jonathan Marsden, Director of Royal Collection Trust, said: “Windsor Castle and the Palace of Holyroodhouse, Edinburgh's royal palace, are two of the most important historic buildings in Britain and home to some of the greatest works of art.
“Future Programme represents an important investment to enhance everyone's enjoyment of the palaces and the Royal Collection and to deliver the best possible experience of visiting these royal residences.”
Work is set to begin in 2017 and scheduled to be completed by the end of 2018, although both palaces will remain open to visitors throughout their development.
The news follows speculation last year that Buckingham Palace was in need of maintenance.
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