The £1.68 million grant aims to conserve a Grade II listed chapel, which is all that remains of the former Netley Military Hospital.
The project will also improve the landscape around the chapel.
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An extension built in the 1980's will be removed and the original façade of the chapel conserved.
A new pavilion will be developed to the side of the chapel with a kiosk, toilets and offices, providing facilities for the historic building to host music and cultural events.
Councillor Andrew Gibson said: "It is fantastic news that that this vital funding from the HLF has now been confirmed, allowing this very special project to go ahead.
"When complete, the project will enable public access to the chapel all year round, six days a week – even including the tower and gallery, where visitors have not been allowed for more than 20 years due to safety concerns."
(LM)
