The Knights received $389,509 from the Department of Sports and Recreation's Community Sporting and Recreation Facilities Fund that will cover a third of the $1.2 million upgrade that will modernise facilities, provide disabled access and improve visitor experience.
Mosman Park Council has committed $65,000 to the project for "Council identified tasks" and the club will cover the remainder via sponsorship, work in kind and fundraising. Club representative Andrew Zuvela said he hoped the work would be finished for the start of the 2016 season.
The grant and improvements would help the club secure a long-term lease with the Town of Mosman Park.
"We're hoping for a minimum of 20 years because we're making a significant investment in the changerooms," he said.
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READ NOWThe Town agreed to "approve a concept for a new lease" beyond 2016 after the club completes "all work associated with facility improvement, to a standard and timetable acceptable to the Town of Mosman Park, utilising funds provided by others, apart from $65,000 allocated by the Town".
Chief executive Kevin Poynton said the Town would work with the Western Knights to construct the lease and looked forward to ongoing negotiations.
"The grant is great news for the local club that provides support, particularly for junior players," Mr Poynton said.