The grant was approved by councillors at a cabinet meeting this week.
The current pavilion, which was built in the 1970s, is in a poor condition and a council report says it is ‘no longer fit for purpose’ as the building is cold, damp and mouldy.
The report stated: “The building is unable to provide basic changing,refreshment, meeting or storage facilities required for field users or users in general.
“The current sports pavilion is in a dilapidated state, beyond economic repair and its current condition will soon lead to demolition on grounds of health and safety.”
Doncaster Council will pay £248,353 towards the project and a further £73,000 will be funded by contributions from Sport England and the Playing Fields Association.
The existing pavilion is on land that is used as the main area of public open space for the community.
It serves as changing and meeting rooms and to host community events such as coffee mornings and bingo.
However in recent years there has been a decline in membership and people using the pavilion for a number of reasons – but the main consensus is that the poor condition of the pavilion is the key reason behind the decline.
Sports teams from the area are still based at the building and it is used by Finningley Athletic FC, Finningley Junior FC, Doncaster Town Cricket Club, Finningley and Blaxton Tennis Club as well as Blaxton and Finningley Parish Councils.
The council report said that the risk of injury to users will increase as the building continues to deteriorate and a new facility will save money long-term.
The pavilion will be run by Blaxton and Finningley Parish Councils and staffed by volunteers.
Coun Pat Knight, cabinet member for public health and wellbeing, said: “I am pleased to see funding granted for a sports pavilion in Finningley, which I’m sure will become a valuable community asset once completed.
“We are passionate about helping local people to stay fit and active, and improving local sports facilities when possible is a good way of achieving this goal.”