The money, from West Lindsey District Council, should trigger further funding bids for the £870,000 project at Marshalls Sports Ground, Gainsborough.
The council took over the site last year when several buildings, including the club house, were condemned.
While plans are at any early stage, work on a new changing building and car park could begin as early as September.
The council said consultations had shown there was a strong local desire to see the sports ground upgraded.
Chairman of the Neighbourhoods and Health Committee, Councillor David Cotton said: "Applications for external funding are being made to the Football Foundation, the Football Association and the Lincolnshire Football Partnership and although we are at a very early stage the indications so far are good."
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