Plans for a £4m development at the New Theatre Royal in Portsmouth have been handed a boost after the Heritage Lottery Fund (HLF) confirmed a first-round pass towards the scheme.

The venue is working in partnership with the University of Portsmouth on the Back Lot project and has been given a development grant of £63,000 to help progress its application for a full HLF award worth nearly £1m. Under the proposals, the theatre will be restored to its original Victorian glory and will benefit from an extended stage area, new backstage facilities and a new 150-seat studio theatre to host studio productions.

New Theatre Royal director Caroline Sharman said: "It's wonderful news for the theatre but great for the whole city as it recognises the value of such an important heritage building and the benefits the project will have for the whole community." Stuart McLeod, head of the HLF for the South East, added: "We look forward to hearing from the New Theatre Royal on their detailed proposals for restoring this wonderful historic building, one of Portsmouth's greatest cultural and architectural assets."