The West Pier in Brighton has been granted £1.6 million of National Lottery cash for emergency work.
Originally, the pier was granted £14 million from lottery funds for restoration, provided it was matched by private funding.
But the Brighton West Pier Trust had to reapply when it acquired new private sector partners, St Modwen.
At that stage, the Palace Pier intervened, claiming the grant would be unfair competition because it gets no funds for restoration.
The Heritage Lottery Fund took the legal challenge seriously and has taken months to consider it.
A spokesman said it had agreed to issue £1,667,900, mainly for emergency work to the Grade I listed pier which dates from 1866.
He said approval from the European Commission in Brussels had been necessary for the grant.
A decision will be made later on the bid by the West Pier Trust and St Modwen for the rest of the cash.
Trust chief executive Geoff Lockwood said: "We are pleased the Heritage Lottery Fund has confirmed its commitment to the restoration of the West Pier and agreed the funding necessary to bring the plans for restoration ready to go out to tender.
"We believe that, before the end of 2002, we will be able to announce the full package and timetable for the restoration.
"The past year of delay, caused principally by the attempt by the owners of the Palace Pier to derail the restoration of the West Pier, has been particularly frustrating.
David Biesterfield, director of the Noble Organisation, which owns the Palace Pier, was not available for comment.
The trust and St Modwen have another obstacle to overcome before restoration can go ahead.
They have lodged plans for two large pavilions on either side of the pier.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article