The Creeslough Community Regeneration fund has been allocated over €12m from the Department of Rural and Community Development.
€12.1m has been awarded through the Rural Regeneration Fund, with match funding of €1.3m being put up by Donegal County Council.
Among the plans are a brand new community centre to be built on an existing site, which will also include sporting facilities such as a running track, grass pitch and tennis court.
The project will now go out to tender before proceeding to the detailed design phase, with a contractor to be secured by December 16th.