Pātea's Hunter Shaw Building has been granted $450,000 for earthquake strengthening.
The grant comes from the Lotteries Facilities Fund and tenders will now go out for the project.
The 1930s building was closed in 2013 after it was found to be earthquake prone.
An engineers report estimated it would cost around $950,000 to prepare the plans, strengthen and refurbish the building.
The South Taranaki District Council has already committed up to $500,000 to earthquake strengthen the building with the remaining funds to be sourced externally, which has now been achieved.
South Taranaki Mayor Ross Dunlop was thrilled Lotteries had made such a meaningful contribution.
"The Hunter Shaw Building is an important heritage building for Pātea and the district and we are very thankful to Lotteries for supporting it," he said.
"Their grant means that all funding has now been secured and we can get on and start the tender process."
The council's contribution to the strengthening will come from its earthquake prone buildings budget.
Hunter Shaw was a farmer in Whenuakura who died in 1927 and left behind a large sum for various charitable institutions including the building of a town library.
Tenders will be sought for the project early in the New Year.