The Hermitage Park project aims to redevelop the 100-year-old urban park in Helensburgh.
It is understood the scheme will be dedicated to the late architect Gareth Hoskins.
His practice, Hoskins Architects, worked in collaboration with Gillespies and community group Friends of Hermitage Park to restore the site.
Features of the project include a newly designed pavilion, new seating, a new sports facility and a children's play area.
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Additional car and cycle parking will also be provided.
Councillor Ellen Morton said: "The money from the Heritage Lottery Fund (HLF) will pay for around three-quarters of the cost of the project, with the council contributing £280,000 directly and the remaining money coming from other funders such as the War Memorial Trust.
"While this is, of course, happy news and is to be warmly welcomed, it is tinged with sadness following the untimely death of our project architect, local man Gareth Hoskins.
"Aged just 48, Gareth was one of the country's most respected architects and has been involved in Argyll and Bute Council projects for a number of years. Our thoughts go out to his family at this difficult time and we can only hope that the redeveloped park will stand as a testament to him."
The council will tender for a main contractor in spring 2016, with work anticipated to begin in autumn.
It is hoped the project is completed by summer 2018.
(LM/JP)
