Lancashire have been boosted by a £2.65m windfall from the Northwest Regional Development Agency to help the redevelopment of Old Trafford.
The money has been earmarked for the first phase of the county's £70m plans to regain priority Test match status.
The £12m initial phase will see the County Suite, Tyldesley Suite and the Ladies Stand replaced.
A new 1,000-seat function room and 2,500 seats are due to be installed by June next year.
Old Trafford has seen a £600,000 outfield, drainage system laid with a new replay screen and scoreboard set to be installed by June along with the erection of permanent floodlights and the re-positioning of the square.
The Red Rose county missed out on hosting an Ashes Test this year with the club now working alongside a number of partners in the hope of landing an Ashes 2013 fixture.
Lee Morgan, the club's finance and operations director, told BBC Radio Manchester: "The main chunk of this first phase is the new grandstand and events facility which is attached to it.
"What is being funded is the cricketing element of that which is the terrace and the grandstand, the power supply and the infrastructure upgrade to sit alongside it.
"It's really the last piece of the jigsaw concerning the generation of the different tranches of funding we need for this enabling phase of development at Old Trafford.
"I joined the club nearly four years ago and action was already in place at that time concerning the development and to look at generating funding."
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