A deal was signed last week between board secretary John Strand and Merthyr Tydfil County Borough Council. The grant will be used to transform the current facilities, including a refurbishment of the current clubhouse as well as the stands surrounding the pitch.
The demolition of the derelict Strikers Club will begin in the next two to three weeks and work will begin on improving the entrance road and turnstiles. A new car park will also be built.
Work on the new facilities around the pitch are expected to start in January next year and will include a 130-seat function room, hospitality boxes and new dressing rooms.
The investment comes just a year after a brand new £500,000 3G pitch was installed at the ground.