The funding comes following a revelation last week that the cost of the project had almost doubled in cost to £80m.
The cost of the project had previously been estimated at £45m.
While deputy First Minister John Swinney said the funding – which takes the Government's investment to £25m – reinforced its commitment to the development, others, such as Scottish Labour leader Jim Murphy, is quoted as saying that ministers need to "get a grip on the spiralling cost".
The council report was published on Friday (16 January), which revealed that talks had been ongoing between Dundee City Council and BAM Construction for a number of months before an agreement was reached between the two on a fixed price of £76.16m for the construction of the building.
-- Advertisement --
If the funding strategy for the development is approved, work on the museum could finally commence in March 2015. The proposals include a request for £22m additional funding from the Scottish Government, as well as £4.5m from the Heritage Lottery Fund and £6.6m from private fundraising.
The report is due to be discussed by the Council's Policy and Resources Committee next week (26 January).
Minister Swinney commented: "V&A Dundee will be an iconic statement at the heart of the Dundee Waterfront development. The signature building will create local jobs and contribute significantly to the regeneration of Dundee and its waterfront, giving the city and Scotland a world-class design museum and visitor attraction.
"The cornerstone of the ambitious Dundee Waterfront development, V&A Dundee is expected to generate more than 270,000 visitor engagements per year and contribute an additional £11.6 million per year to the local and national economy.
"The £25 million capital funding we have allocated to this iconic project underlines the Scottish Government's firm commitment to working with the project board to ensure its delivery, success and long-term sustainability."
(JP/IT)
