Castlehill Community Centre in Cupar is to undergo an upgrade at a cost of nearly £130,000.
The money will be spent on a new extension and improving toilet facilities.
The community centre is also going to be brought together at the Castlehill site.
It previously ran over two sites at Castle Hill and St Catherine Street.
The latter of the two is expected to be sold off after problems with dry rot and water ingress were discovered.
Both buildings are owned by Fife Council.
Speaking to councillors, Community Manager Janice Laird said: “The Robertson Trust have deferred their decision on funding until May, given that the work wouldn’t start on site until Summer 2020.
"While we have had positive feedback from them, they are waiting to see if all other funding comes together.”