The Arts Council announced on Tuesday it plans to invest £900,000 over four years in the city's Harris Museum and Art Gallery.
A statement said: "Our investment will support Preston City Council’s aspiration to make the Harris a creative, civic and community space."
The boost is part of an 18 per cent funding increase across Lancashire with the Arts Council pledging to spend more than £10m from April 2018 to 2022 across its national portfolio.
Preston based Curious Minds, an arts organisation for young people, will continue to receive funding, the Arts Council has also pledged.
The funding for the city centre museum will provide further support for the Re-Imagining Harris project to regenerate the historic facility.
Jane Beardsworth, the Arts Council’s North Director said: “We are delighted to support the cultural sector across Lancashire through greater investment.
"This will increase opportunities for a wide range of people to enjoy high quality arts and culture close to where they live. We are supporting local artists and through funding for work with children and young people we are helping to develop the next generation of artists and audiences.”