The project passed the first round stage of funding, which highlights backing for the outline proposals.
Development funding of £392,000 has been awarded to help the City of Edinburgh Council to progress with their plans to apply for a full grant at a later date.
The Council aims to secure funding to restore the historic park to its former glory.
If awarded the full grant, it would allow the Council to carry out extensive works to renovate the walled garden, footpaths and historic features, and replace the Winter Garden building with a Victorian-style glasshouse. It would also include the creation of a café and community building.
Councillor Lesley Hinds, Transport and Environment Convener, said: "This is a fantastic indication of support from the Heritage Lottery Fund and we now have two years to fully develop our plans. This project has the potential to completely transform this area of the city and put Saughton Park on a level with other premier Edinburgh parks.
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"Since we announced our intention to bid for the money earlier in the year, the idea that Saughton Park and Gardens could be restored to its former glory has really captured the public imagination. The history books show that the park was once a leading tourist attraction but over recent years has lost its focus.
"This is a once-in-a-lifetime opportunity to get the funding to put this park back at the centre of outdoor living in Edinburgh and at the centre of horticultural activities in Scotland."
The Heritage Lottery Fund sustains and transforms a wide range of heritage through innovative investment in projects with a lasting impact on people and places, while the Parks for People programme uses Lottery funds to support the regeneration, conservation and increased enjoyment of public parks. The programme aims to improve the local environment and put parks firmly back at the heart of community life.
Carole Souter, Chief Executive of HLF, added: "We're delighted to be able to provide this much needed support for Saughton Park, when it could not be more needed. Many public parks are really suffering in the current economic climate so this is particularly good news for Edinburgh. Parks are important to all of us and add so much to our quality of life. Saughton Park will help to bring the local community together and now, we can help to secure its future."
The estimated cost of the project cost is £5.83m, of which £4.09m is sought from the Heritage Lottery Fund and £233k from third party sources. The Council would also contribute £1.25m, phased over a six year period, and includes £250k to install a micro-hydro turbine to generate power for the proposed garden café and community facility.
(JP/CD)
