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A £3.8million grant will enable plans for a possible cable car linking Dover Castle with the Western Docks to move forward.
The money is from the Government’s Sea Change programme and is part of £10m awarded to three coastal towns.
As well as the cable car, Dover’s money will also go towards improving the castle, including updating the secret wartime tunnels.
The Bleriot Monument, which commemorates the first cross-Channel flight, will also be refurbished.
The other towns to receive money are Blackpool and Torbay.
Announcing the grants, Culture Minister Margaret Hodge said: “The Sea Change scheme is all about kick-starting regeneration through cultural investment in our seaside communities, helping to preserve their heritage and encouraging new and exciting projects.
“I’m delighted these fantastic plans for Blackpool, Torbay and Dover are now going ahead.
“Not only will they encourage new visitors to the area but they will also help support and enrich the community.
“These three large grants are the first in this programme and I hope they will inspire other coastal resorts to dream up similar innovative and creative plans.”