Saltdean Lido has received £2.3 million towards its restoration.
The historically important art deco lido is on the English Heritage At Risk Register.
The East Sussex lido is one of many seaside attractions across England to benefit from a record £36 million government investment to boost growth in coastal areas. Words: PA
The funding will help create a community hub and 60 jobs at the grade II*-listed building, according Brighton Kemptown MP Simon Kirby.
The money, which comes from the Department for Communities and Local Government (DCLG) as part of the Coastal Communities Fund, will be used to restore the outside area and pools.
In May 2012, Brighton and Hove City Council agreed to take back control of the lido following a campaign to safeguard it, granting a 60-year lease to Saltdean Lido Community Interest Company (CIC) in December with a clear remit to restore, renovate and modernise the pool and the art deco building.
The building also gained the backing of Sir Terence Conran, whose architectural practice Conran and Partners, which specialises in art deco buildings, has drawn up restoration plans as an alternative to proposals to convert it into residential accommodation.
"The lido is a landmark building and the funding will enable current and future generations to enjoy the iconic swimming pool in a safe environment and with modern heated water."
Mr Kirby said: "I am delighted to be able to announce that the lido will benefit from an additional £2.3 million funding which will make a huge difference.
"I would also like to again pay tribute to the work of the CIC and also to the many local residents who have supported this campaign."
14 swimming pools with spectacular views
Swimmers take a dip in Tooting Bec lido wearing novelty hats
Is this Britain's best seaside hotel?