Durham County Council has been awarded £336,000 by the Heritage Lottery Fund (HLF) towards a restoration of the Grade II-listed Witham Hall in Barnard Castle.
The two-year project is part of a wider regeneration programme for the town, which is one of the 51 most historically and architecturally important in North East England.
Witham Hall will be restored and transformed into a heritage learning centre, while a wide range of community, business and cultural activities will benefit from improved facilities.
Ivor Crowther, head of the HLF North East, said: "[The project] will totally rejuvenate a much-loved building, bringing it back to the heart of the community for everyone to use and enjoy."