Four Brighton schools will share a £12.5 million Government handout.
The news comes on the same day as the announcement of regeneration cash for Brighton and Hove, East Sussex and West Sussex totalling £12 million.
The schools' windfall comes after ministers backed a Brighton and Hove Council plan to modernise the schools and build a library at Patcham.
The council has yet to be officially told it will get the cash but has received informal notification from the Government its bid has succeeded.
The money will support a council-backed private finance initiative project to fund refurbishments at the four schools.
Dorothy Stringer School, Varndean School and Patcham High School will use the money to help create 450 new places, as well as providing specialist accommodation.
At Patcham High School the work includes a new public library, a dining hall and facilities for pupils with special needs.
The troubled East Brighton College of Media Arts will get cash to help fund specialist media and arts facilities, as well as improve access for people living nearby.
Brighton and Hove councillor Frieda Warman-Brown, who is responsible for education on the ruling cabinet, said it was good news although the council was still waiting for confirmation.
She said: "It will benefit several schools, help us reduce the pressure on secondary school places and provide state of the art specialist facilities for students."
The Government also announced today a £5 million cash bonus for Brighton and Hove.
The money is being awarded by the South East England Development Agency Fund for Regeneration which is funded by the Government's Single Regeneration Budget.
Brighton and Hove Single Regeneration Partnership, which includes representatives of Brighton and Hove Council, Sussex Enterprise, Business in the Community, the Employment Service, health authority, Sussex Police, South East Arts, the Sussex Academic Corridor and the voluntary sector, will use the cash to help promote social inclusion and economic development in the towns.
Chairman Maggie Deacon said: "People across Brighton and Hove have supported the development of this successful bid. We shall now be working with them to agree priorities for action."
Grants will achieve change in three areas - supporting voluntary and community groups, community safety and basic IT skills.
Examples include a resource centre for black and minority ethnic communities, supporting victims of crime and improving the availability of training at home, work and in the local community.
Ken Bodfish, Brighton and Hove Council's executive councillor for regeneration, said: "We are building upon success to improve the quality of life and better job prospects for local people."
The news has also been welcomed by Brighton Pavilion MP David Lepper, who said: "The fact that we are a busy and successful South Coast resort and conference town masks the fact there's real deprivation here.
"The funding is going to help involve more local people in making decisions about their town, going towards training to help young people get involved in community organisations and will be used to help combat racial discrimination. I think it's excellent."
This is the sixth round of Single Regeneration Funding from the Government since the initiative was started in 1994. So far Brighton and Hove has won more than £43.5 million.
Brighton and Hove is just one of today's winners.
East Sussex County Council has been awarded £200,000 towards developing the Coastal Renaissance Partnership to help towns like Newhaven, Seaford and Peacehaven.
Deprived areas in West Sussex, including Worthing, Bognor Regis, Littlehampton and Selsey have also scooped £6.9 million.
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