The Turner Contemporary in Margate is to receive catalyst funding which could be worth up to £1m.
The Margate art gallery is one of the 18 recipients of a catalyst endowment grant, which was announced by the Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt.
The funding is a seed fund worth up to £1m and will be released to the gallery when it raises the equivalent amount of cash and is designed to bring more money into the arts sector instead of replacing existing income.
The scheme is funded by the Department for Culture, Media and Sport, the Heritage Lottery Fund and Arts Council England, and the Turner Contemporary has welcomed the financial boost.
Director Victoria Pomprey said: “We have had a fantastic opening year, with a brilliant response from visitors, the local community and from the media.