Once redeveloped the site will provide a modern, fit-for-purpose facility that will be able to be accessed by the community on request.
Hastings councillor Malcolm Dixon, speaking on behalf of the Joint Working Group, said their application for contestable New Zealand Lotteries Commission funding was successful, with $1m received from the Lottery Environment & Heritage Fund and $4.47m from the Lottery Significant Projects Fund.
"This critical funding injection allows for the project to ramp up. We can now progress with finalising designs and then undertake the development of this facility, which is all very exciting."
Consultation on the design will be undertaken with multiple parties including local iwi and mana whenua, MTG staff, and museum experts.
Hastings mayor Sandra Hazlehurst said she was proud Hastings District and Napier City councils had made a joint investment in a permanent regional museum storage facility.
"This funding will enable the project to proceed and our precious taonga will have a new place to call home. This collection, owned by our Hawke's Bay community, needs to be protected, kept safe and made accessible for future generations.
"A lot of the taonga comes from Heretaunga so it is fantastic it is returning home to Hastings. The new purpose-built storage facility will add to our arts precinct, alongside Toitoi – Hawke's Bay Arts and Event Centre, the soon to be reopened Municipal Buildings, Nga Pou o Heretaunga, and our Hastings City Art Gallery."
Napier mayor Kirsten Wise said the collection was an important regional asset.
"I'm thrilled that in the future the collection's guardianship will sit across our two cities within both the MTG and the new storage facility."
Hawke's Bay Museums Trust chairman Richard Grant said the Trust welcomed the funding support.
"The Trust has long advocated for a dedicated storage facility for this collection, which is of major significance, not only to the region, but also nationally."
Ngāti Kahungunu Iwi appointee to the Trust, Nigel How, said the iwi was heartened by this funding support, bringing a purposely designed home for our region's taonga closer.
"The facility will build on the excellent care of our taonga by museum staff and provide greater opportunity for meaningful access."