The Ministry of Housing, Communities and Local Government (MHCLG) will provide Portsmouth City Council with £1.3m to replace the cladding on two tower blocks.
Proposals for the blocks, Leamington and Horatia Houses, will now be considered.
One of the options put forward is deconstructing the blocks and redeveloping the site to create more affordable and social housing.
The authority applied to MHCLG’s Social Sector ACM Cladding Remediation Fund for the cost of removing the cladding following the Grenfell tragedy.
The Fund has accepted the applications for both buildings and agreed to fund the removal of cladding. Homes England will now liaise with the council to finalise the funding agreement before transferring the capital grant.
Portsmouth City Council’s Cabinet Member for Housing, Cllr Darren Sanders said: “I am delighted that the Government has awarded us this money.
“This is a really helpful contribution to the costs of removing the cladding and we will continue to press it to help us with all the costs that we have incurred thus far.”
“I now hope the government will support us with funding to help secure the future of these sites.
“Now the Council has decided that refurbishing the blocks costs too much and selling them helps only developers, we want to work with local people to provide some of the much-needed homes Portsmouth people can afford.”