The winning company - Marte.Marte, picked from among 12 candidates - submitted a plan which will cosmetically change the façade of the building and give it a new roof. Work is expected to be completed by 2023 and will cost about €5m ($5.6m; £4.5m).
"The neutralisation of this whole location was ultimately at the heart of this result," interior ministry official Hermann Feiner told reporters.
Little marks out the house to suggest it is where the Nazi leader was born. A rock outside which reads "Fascism never again" is to be moved to a museum in the capital Vienna. A local historian however told the BBC that it was very important that the stone should stay in Braunau.
The genocidal dictator himself barely spent time at the property. He was born in an apartment in the 17th Century building in 1889, but his family left a few weeks later for another address in the area, and left the town permanently when Hitler turned three.
Neo-Nazis have however travelled to the site, and authorities want to ensure it does not attract others in the future.