The Stout Trust was set up with the proceeds of the J D Stout Charitable Estate to contribute to New Zealand's cultural, environmental and scientific heritage.
Ms Taylor Moore said the timing of the grant means the paintings should be ready to hang in the re-developed Sarjeant Gallery complex on the original Pukenamu Queen's Park site.
The 97-year-old Sarjeant Gallery heritage building is currently unoccupied awaiting earthquake strengthening and restoration as part of a proposed $34.9 million dollar redevelopment that includes construction of a new wing and storage facility.
She said the 4 metre wide by 2.6 metre high The Flight into Egypt painting recently hung in a rear stairwell in the historic gallery.
"Due to its considerable size and weight the painting remained on permanent display at the Sarjeant Gallery for 96 years and is now in dire need of conservation treatment," she said.
Ms Taylor Moore said the treatment will consolidate cracking and lifting paint over a third of the painting and fill any paint losses, vastly improving its appearance and condition.
She said staff at the Auckland Art Gallery Conservation Unit are among the most experienced and highly qualified conservators in the country with considerable experience in treating large scale works.
The ornate frame has gone to Manawatu for restoration by wood conservation specialist and managing director of Manawatu Museum Services Detlef Klein.
The intricate task of restoring the frame to its former glory is expected to take up to two years.
The work includes repairs to gilded decoration that is lifting off and restoration of gold leaf gilding.
Ms Taylor Moore says the frame is unique in New Zealand and was designed specifically for the painting with Egyptian references and lotus flower designs.