The investment will see a derelict land site in the town transformed into high-quality office space and create jobs for up to 1,000 people.
Once work is completed, the Rutherglen Low Carbon Zone will be a 15,922sq m space for businesses and SMEs.
The project, which is being developed by Clyde Gateway URC, will receive £2.5m grant support from the European Regional Development Fund towards the cost of the ambitious scheme.
The monies will support the first phase of the project to redevelop the vacant site.
The site is one of three to receive funding in the latest round of ERDF grants, with Irvine Bay Developments securing £1.5m towards the 'i3 Irvine Innovation and Industry' project, and Dundee City Council securing almost £150,000 towards the 'Dundee European Programme ERDF Job Brokerage' initiative.
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Commenting on the project, Housing and Welfare Minister Margaret Burgess said: "Investment in large scale regeneration projects is absolutely key for stimulating economic growth throughout Scotland.
"The development of this derelict site into high spec office space will help to create up to 1,000 jobs for Scottish people, helping to bring our communities closer together and injecting new life into the Rutherglen area.
"This government recognises the importance of projects like these for stimulating economic growth, which is why I am pleased to announce this £2.5 million investment of European Funds. Significant developments like one are absolutely key to stimulating growth in our construction sector – something that is absolutely imperative in these tough economic times.
"This government is clear about the contribution that regeneration makes to growing our economy and improving the life chances of Scotland's people."
(JP/CD)
