The news has been hailed a "major breakthrough" by its supporters who have been fighting for substantial funding to refurbish the historic building for years.

Now Lottery bosses have given the hall green light for a major cash handout.

It will allow large scale improvements to the 17th century manor house to go ahead - costing up to £4.5 million.

This will include:

•General refurbishments to the hall, making it more useable, including rewiring and redecorating.

•New exhibitions.

•Excavations to find the remains of the priory.

•Work on the garden parterre and mound.

John Miller, Chief Executive of Heritage Trust for the North West, said: "It is a major breakthrough after ten years."

Heritage Trust for the North West, supported by Lytham Town Trust, who own the hall, submitted a Lottery application and received a 'Stage I Pass'.

This means the project meets the Heritage Lottery Fund criteria for funding and is believed to have potential to deliver high-quality benefits and value for Lottery money.

Ted Stanworth, chairman of the trustees of Heritage Trust for the North West, said: "This is really excellent news.

"Staff and volunteers and our consultants, particularly our architect Niall Phillips from Purcell Miller Tritton, are to be congratulated on securing the Heritage Lottery Fund grant."

The outline plans for the Hall were on view at Lytham Heritage Centre last Summer and a further exhibition will be mounted in due course as the proposals take shape.

Meanwhile, the Lottery has approved a grant of £160,000 towards the cost of £308,000 to enable the Trust to submit fully developed proposals within the next 18 months.

The grant will support the appointment of a senior officer to co-ordinate the next stage of the application.

Mr Miller praised those who had supported the fund raising efforts, including Fylde MP Michael Jack and numerous local organisations who had given small grants.

Meanwhile, the Hall is open every Sunday, 11am-4.30pm.