Tourism will put £250,000 of taxpayer’s 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, have had previous plans accepted.
Delays and rising costs mean that they cannot now afford to carry them out.
A revised proposal has been submitted to Planning.
If it is accepted before October, work will begin immediately and will end in time for the first race of next season on the Easter bank holiday weekend.
Club president Robin Rumboll said: ‘We have a window of opportunity to finish the development this winter and have it ready for the first race of next season.
We have been granted permission for previous proposals, and the latest submission is more ecologically friendly.
We are hopeful it will be passed.’
