Fr Richard Gibbon, parish priest at the national shrine in Co Mayo, said the refurbishment plans were needed as the shrine attracts as many as 1.6 million pilgrims a year.
The news came as 15,000 pilgrims gathered for a special ceremony to consecrate Ireland to the Immaculate Heart of Mary at the shrine.
The 42-year-old parish priest, who only took over his role in Knock in February 2012, told the Irish Independent that there would be three aspects to the upgrade.
The first part will involve the "complete interior refurbishment of the basilica", which was built in 1976. "It is a little tired and jaded and it has to meet modern requirements," he said.
He said the plan had been in the pipeline for over a year but that it would involve a major fundraising drive before any work could begin.
Other aspects of the major overhaul will involve the incorporation of new faith formation and catechetical programmes aimed at pilgrims.
The third prong of the overhaul will be a campaign to promote Knock at home and abroad.
He said he had no idea of cost until the plans come together.
According to Fr Gibbon, the church will be seeking to promote Knock, especially in Continental Europe and the USA.
"We have an annual attendance of 1.6 million, which is extraordinary – it even beats the Guinness Hopstore. It is not spoken of that often but we want to tackle that and get it better promoted than it is."
Archbishop Eamon Martin, future Primate of All Ireland, told the Irish Independent: "I don't think we realise the treasure we have in Knock.
"It is a very special place of prayer and reflection and the fact that people of all faiths and none come here to be lifted up in their spirit shows there is something really special about Knock."