The funding is being administered from the £25m Scottish Government Regeneration Capital Grant Fund (RCGF).
Along with lottery funding from Creative Scotland, Banff will receive more than £300,000 to redevelop a derelict building in the town.
The Meal House B-listed structure will be brought back into use to revive silversmithing and will act as a studio for contemporary silversmith graduates.
It is hoped graduates will settle in the area, possibly open a retail outlet and produce new silver pieces linked to the region once again.
Banffshire Preservation and Historic Society spokesperson, Julian Watson, said: "As potential future managers of the historic building we commissioned a feasibility study and preliminary findings show that the building has the potential to provide a unique Scottish Silversmithing Facility.
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"This will bring new focus to the town’s silver heritage, breathe new life into The Meal House and Banff Museum, as well as offering young silversmiths a unique opportunity."
In addition, long-term regeneration scheme 'Fraserburgh 2021' will receive over £1m towards its £2.2m project.
The development includes the of Saltoun Square Council Chambers with a proposed new sports development at the town's South Links.
The scheme is a key part of the town's Fraserburgh Conservation Area.
Vice Chairman of the council's Infrastructure Services Committee (ISC), Stephen Smith, said: "Securing funding for these developments is very important for our emerging vision of strong, resilient communities, where businesses and people are enabled to flourish.
"The combination of a revival of Saltoun Square Council Chambers and new sports facilities for the many existing and prospective sports club members in Fraserburgh were two of the earliest and strongest aims which emerged during consultation on the town's renewal, so it is great news that we have not only listened but will now deliver what are the largest projects to date in our regeneration efforts for the town."
It is estimated work will start at Saltoun Square Council Chambers and Police Station in August 2017, with work on the sports development finished by autumn of 2018.
The Silversmithing project in Banff is scheduled to be ready by 2019.
(LM)
