The Environment Agency has provided a £138,000 grant towards Rossall's sea defence scheme aimed at protecting 6,000 properties from coastal flooding.
Wyre Council said the funding will mean the project can be developed up to the detailed design stage and strengthen its chances of being recognised as a national priority.
The council feared that the scheme would be delayed for at least three years because of budget cuts. However, a strong business case from the council won support from the EA's regional officers, who were able to secure the money.
Early discussions with contractors will also begin, so that work can start on site as soon as funding is made available.
Cllr Roger Berry, cabinet member with responsibility for sea defences at Wyre Council, said: "We are delighted at this level of commitment from the Environment Agency. This is an area with a high risk of flooding and residents living nearby should be reassured that we will continue to ensure that this is recognised nationally.
"We are very grateful to the regional officers for all their support in getting us to this vital stage and are confident this will continue throughout the whole project."