Lewes District Council will submit a bid to the government's Town Fund in January that could unlock a multi-million windfall for economic regeneration in Newhaven.
After Newhaven was one of 101 towns shortlisted for the funding, council officers and the Town Deal Board are putting the finishing touches to a "Town Investment Plan" in a bid to access funding of up to £25 million.
The Town Fund is a £3.6 billion pot of money that the government describe as "driving the sustainable economic regeneration of towns to deliver long-term economic and productivity growth."
Councillor James MacCleary, Leader of Lewes District Council and local councillor for Newhaven South, said: "We've listened carefully to the feedback from the consultation process and council officers have used those insights to inform a really strong bid.
"As a local resident I'm excited that the council could secure this much-needed funding and use it to kickstart a number of projects that will create a new wave of prosperity and vitality in the town for years to come."
The Town Deal Board will have final sign off on the Town Investment Plan for Newhaven. The board is chaired by Chris Ketley, a partner at local chartered accountants Knill James and also includes Councillor MacCleary, Maria Caulfield MP, Baroness Whitaker and representatives from Newhaven Town Council, East Sussex County Council, the Greater Brighton Economic Board, South East Local Enterprise Partnership, Newhaven Enterprise Zone, central government, community, education and business representatives.
Councillor MacCleary added: "In recent months, we've really started to get things moving in Newhaven and plenty more in the pipeline.
"Our town has been let down so many times over the years, but I will keep making sure that we are at the front of the queue. People like to talk our town down but it's a great place to live with a great future ahead."