Douglas Laing & Co is proposing to develop a distillery, bottling complex and head office at Pacific Quay in the city.
Other features will include a visitor centre, a whisky laboratory and archive, bar and bistro.
To help fund the development, Douglas Laing & Co is to receive £855,000 through the Food Processing Marketing and Co-operation (FPMC) grant scheme. The grant will assist with the capital costs of distillery equipment and plant.
In addition, the Scottish Government is also part-grant funding the development, which will create up to 38 new jobs.
The Pacific Quay site is owned by Scottish Enterprise which has appointed Drum Property Group as preferred developers. Planning discussions with Glasgow City Council are advanced.
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Announcing the funding, Scottish Government Environment Secretary Roseanna Cunningham said: "I would like to congratulate Douglas Laing & Co Ltd on securing this funding, which will pave the way to bring quality whisky production to the heart of Glasgow.
"This is just one example of how the Scottish Government in supporting our world-class producers to flourish, ensuring that our food and drink continues to be the cornerstone of our economy, environment and culture."
Cara Laing, the firm's director of whisky, said: "We are enormously grateful for the support we have received from the Scottish Government, Scottish Enterprise and the city council planners in Glasgow.
"The FPMC package was very important to the project and without it we would not have been able to undertake a project of this scale, so we deeply appreciate the assistance we have received which allows us to drive the development forward and recreate not just a piece of whisky history in Glasgow but a healthy number of new jobs.
"At the same time we shall be providing a top quality, environmentally friendly facility delivering high efficiencies which will result in reduced packaging, less wastage, reduced energy consumption and lower costs allied to CO2 reductions."
(LM/MH)
