The cash will be available over the next four years through sportscotland, the Scottish Government's national agency for sport.
The announcement was made as the Scottish Cabinet gathered in Fort William for their first meeting in the town, and the first of four Cabinet meetings and associated events being held outside Edinburgh over the summer.
Projects with a value of up to £100,000 will be available to community groups and sports clubs to upgrade and improve local facilities. This will help increase participation levels and provide support to sports in the run up to the Commonwealth Games in 2014.
It complements plans by the Scottish Government to create 100 Community Sports Hubs by 2014, to ensure that all of Scotland benefits from the Games.
This pledge has been backed by £1.5m annual funding as part of a Games Legacy plan. Based in local facilities such as sport centres and schools, hubs provide information, support and advice on sports and physical activities in local areas to encourage Scots to lead active and healthy lifestyles.
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First Minister Alex Salmond said: "The Scottish Government takes sport and physical activity seriously. We are committed to improving facilities for communities across Scotland, and we want everyone to be able to access quality sports amenities in their local area.
"This £4 million fund will help communities upgrade equipment and facilities such as sports halls, pitches, tennis courts and changing rooms, and follows a £500,000 fund announced by Sports Minister Shona Robison last month to encourage community ownership of sports amenities.
"It is fitting to be launching this important scheme in the beautiful surroundings of Fort William and Lochaber here in the outdoor capital of the UK. The wealth of sports and physical activities on offer in the area are excellent examples of the kind of projects that will benefit from this fund.
"As well as creating 100 Community Sports Hubs by 2014, through sportscotland, we have invested over £35 million in local facilities, and over £31 million to support national and regional facilities since 2007, including 10 new and upgraded swimming pools and 22 football pitches.
"This commitment is especially important in the run up to Homecoming 2014 - the year in which Scotland will host the Ryder Cup and Commonwealth Games. During 2011, the year of Active Scotland, we aim to celebrate and promote the benefits of an Active Scotland for all.
"This will be the key theme of our Summer Cabinets as we take the meetings to the people of Scotland for the fourth year running, showing that the Scottish Government continues to recognise the importance of staying connected with communities the length and breadth of the country."
The sportscotland Small Projects Fund covers sports projects with a value of up to £100,000 with award levels for communities typically set at up to 50 per cent of the project cost, increasing to up to 100 per cent in exceptional circumstances. A simplified application process has been adopted, making it quicker and easier for clubs to apply for funding.
(GK)
