The council confirmed they will now put forward a business case in order to receive the maximum £150,000 allocated to more than 50 towns across the UK.
DMBC bosses has chosen the Waterdale area of the town centre to spend the money on.
It's unclear at this stage as to what the money will be spent on.
Waterdale is currently undergoing a complete revamp with schemes such as the council-backed cinema and new library and museum already under construction.
Coun Bill Mordue, cabinet member for business, skills and economic development, said: “We welcome the news that the Government has shortlisted Doncaster to benefit from the Future High Streets Fund.
"We will now be working up plans to hopefully secure this potential funding which will support our ongoing regeneration of the town centre and the delivery of our ambitious Urban Centre Masterplan.”
Prime Minister Boris Johnson said: "Our high streets are right at the heart of our communities, and I will do everything I can to make sure they remain vibrant places where people want to go, meet and spend their money.
"But with our town centres facing challenges, we’re today expanding the High Streets Fund to support over 100 high streets to regenerate – backed by £1 billion of vital investment.
"This scheme is going to reenergise and transform even more of our high streets – helping them to attract new businesses, boost local growth, and create new infrastructure and jobs."