Tourism will put £250,000 of taxpayers’ money, taken from their development fund, towards the project and members and supporters of the Jersey Race Club will provide the rest.
The club, who had originally hoped to have a new grandstand in place for this year, will now submit a revised proposal to Planning and if it is accepted work will begin at the St Ouen track after the last race of the season on 23 August and it is hoped it will be finished in time for the first race of next season on the Easter Bank Holiday weekend.
More top jockeys and horses from the UK and France will be attracted to races in Jersey if the development is given the go ahead, say club members.
Like a previous proposal, a grass bank-covered structure will allow more than 1,000 people to watch the races.
Other facilities in the grandstand will include a weighing room, changing rooms for jockeys, and public toilets – at present punters are forced to use portable toilets.
The club will also have their own tote room where punters can place bets, but the traditional track-side bookies will stay.