Bristol City Council says it has taken the "heartbreaking but necessary" decision to set up a temporary morgue.
Work will begin on Tuesday to build a facility on Sandy Park Road in Brislington with enough space for 240 bodies.
The site is currently used as a service yard for council vehicles.
The city council says the morgue will only be used if capacity is exhausted elsewhere.
Bristol mayor Marvin Rees said that over the new few weeks "the sad reality is that we are likely to see a significant number of people lose their lives to coronavirus".
He added: "We must be ready to ensure we deal with that in the most dignified and sensitive way possible so we can respect the deceased and their families.
"We are following national guidance, and building a temporary mortuary will be similar to a number of others planned around the country, as we all come to terms with the tragic implications of this crisis."
Construction of the morgue is expected to be finished by the end of the week.
The council said its staff working at Sandy Park would be offered emotional support, and the morgue, which will be close to nearby housing, would be "discreetly concealed".