Liverpool's Everyman theatre has secured £5.9m from the European Regional Development Fund towards its £28m redevelopment.
The theatre based on Hope Street will close on Saturday 2 July and will appeal for the remaining project costs needed in the autumn.
Over £700,000 from private trusts and foundations has already been raised towards the projects costs which totals £2.1m.
The theatre was bidding for £2.4m from the North West Development Agency towards its redevelopment costs but was one of the projects to fall victim to the Government's spending cuts in July last year.
The project is supported with £16.8m from Arts Council England and £2.5m previously invested by the North West Development Agency.
Deborah Aydon, executive director of the Everyman and Playhouse theatres, said: "After ten years of planning and many funding setbacks we are absolutely delighted to reach this point. We are enormously grateful to the funders and to other supporters such as the City Council, who have made this happen by working together. In just a few months we will be on site, working to create an inspiring new Everyman for generations to come."
The project will include:
- A new 400-seat theatre including second level of seating
- A recreation of the existing Everyman Bistro bar and restaurant
- A dedicated space for working with youth theatre, schools and community groups
- Front-of-house, catering and bar facilities
- Rehearsal space and production workshops
The existing theatre building is 6,000 sq ft, which is being increased to 15,500 sq ft plus a 1,022 sq ft loading bay.
The new Everyman, designed by specialist theatre architect Haworth Tompkins, will open in 2013.