Enterprise firm Govan Workspace is planning to use the funds to transform a derelict strip of land at Water Row into a Clyde walkway.
Having fallen into disrepair over the years, local residents and businesses are keen to see the land brought back into use.
Pat Cassidy, managing Director of Govan Workspace, said the area is currently a haven for underage drinking and he hopes the new development will rejuvenate it.
Pat said: "It is an environmental disaster and it has been left to rot for decades.
"The interesting thing is that it was once a walkway so it will be restored to what it was formerly in Govan.
"People are delighted. For years they've been talking about how good it would be to get access to the river again."
The works, which are expected to last a year, are planned to begin this summer with handrails and lights being installed along the 200m walkway.
It will give locals and tourists access to the Providing a path will also connect Govan Old Church, in the heart of the area, with the riverside, which could help to attract more people to the historic site.
Mr Cassidy added: "A new display of the Govan Stones opened last July and attracted more than 6000 visitors.
"This collection is on a par with those at Iona and St Andrews and is the biggest in Scotland from the 10th and 11th centuries.
"We hope the new approach along the river will draw more visitors especially from the nearby Riverside Museum when the ferry is operating."
Half of the cash was donated by the Big Lottery Fund, with the remaining £250,000 coming from Glasgow City Council's Central Govan Action Plan.
Deirdre Gaughan, chairwoman of CGAP said: "The funds will transform currently derelict land to provide an attractive walk and cycle way.
"It will re-establish Govan's link to the river, sustain Govan Old Church and the Govan Stones as a main visitor attraction, and be a tranquil spot for locals to enjoy."
A spokesman from the Big Lottery Fund said: "Our Community Spaces programme allows local people to get together and shape their neighbourhood.
"For Govan Workspace this investment will enable the project to transform a derelict area of land on the banks of the Clyde, providing a new community space close to the river for people to enjoy.
"I am delighted that the award will help the group achieve this goal."