West Dunbartonshire Council will use the cash to transform the derelict site, where the liners Queen Mary, Queen Elizabeth and the QE II were built.
The former John Brown Shipyard site was bought by Clydeside Regeneration in 2004.
However, due to difficult market conditions, the owners have been unable to attract fund to carry out infrastructure works.
The local authority now plans to invest millions into preparing the site for future use.
Councillor Patrick McGlinchey, said: "The proposed investment will stimulate the development of this very important derelict site.
"I am confident that an agreement will soon be reached to allow this ambitious plan to move forward.
"It is another great example of this council tackling the issues that we face head on so that we can really bring much needed change to West Dunbartonshire."
More than 800 homes, a care home, shops, pub/diner, hotel, and new public space, are all part of the proposals.
It is hoped that a deal will be done between the council and the site owners later this year.
Duncan Graham, of Clydeside Regeneration, said: "We have been working closely with the council and Dawn Developments in an attempt to find a way to unlock the development potential of Queens Quay.
"Since 2008 there has been little or no enthusiasm from mainstream funders to invest in large regeneration projects.
"By providing this funding the council is playing a vital part in bringing forward large scale regeneration and sustainable economic development.
"Allowing substantial inward investment to come forward from the private sector to deliver much needed new housing to the area and also giving Clydebank a gateway to the river."