The cash, from Glasgow City Council, is the second windfall in days towards the creation of the Calton Heritage and Learning Centre following a donation of almost £1million in lotto money.
The new centre will highlight Calton's rich heritage while at the same time provide a desperately needed community facility for locals.
Community activists on the Calton Area Association have been campaigning for the hub and described the second cash boost as "the best news in years."
The latest financial injection comes as council chiefs finalise preparations for a consultation and information day at which the authority's regeneration plans for the area will be unveiled.
This event will be held at the Barras Centre on the Gallowgate on Tuesday, June 19, between 10am and 8pm.
Building work will begin later this year with the centre due to open by next summer.
The double cash boost was welcomed by association chairwoman Betty Cosgrove who said: "No-one can recall such a significant fin- ancial boost to our community.
"This money will go a long way to helping local people to celebrate Calton's proud heritage, but just as important, pro- vide a much-needed venue for the whole com- munity to use for learning and social needs."
The Calton Area Association is currently given use of a community flat by Thenue Housing which also helped activists successfully apply for £823,000 from the Big Lottery Fund.
Chief executive Charlie Turner said: "This is another piece of good news.
"Calton has made a great contribution to Glasgow and in the 19th century was a powerhouse of industry and commerce.."
Ex-Lord Provost Liz Cameron said: "I am pleased to see the amount of investment now being directed to Calton."