The funding will be used to purchase new waste management equipment, such as roll packers and compactors, to improve efficiency and capacity. Additionally, a community reuse hub will be established at the Riverside site to encourage recycling and reduce waste.
The project is part of a wider effort to promote sustainable practices and accelerate Scotland's circular economy.
Committee convener Cllr Steven Rome said: "This additional external grant funding is welcomed and will contribute towards our ambitious targets for recycling and reuse in the city with site upgrades to the city’s recycling centres.
"It will deliver improvements to these sites including re-surfacing. When works go ahead, they will be phased to try and minimise disruption.
Climate, Environment & Biodiversity Convener Cllr Heather Anderson said: "Through acquiring additional waste equipment, this will help staff to compact skips more efficiently, make the best use of space and lower our carbon impact in doing so.
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"As a council, we declared a climate emergency with waste being one of the key themes within that declaration and the subsequent Dundee Climate Action Plan. To make a real impact, it is important that we continue to improve the reduction, reuse and recycling of waste and resources in the city."
David Gunn, Recycling Improvement Fund Manager at Zero Waste Scotland, said: "It’s fantastic to see improved reuse and recycling infrastructure on the cards for Dundee with support from the Recycling Improvement Fund.
"Opting for second-hand, donating goods once they’re no longer needed, and recycling as much as we can are all great ways for residents to protect the environment and support the local economy at the same time. We are proud to be working with Dundee City Council to embed these improvements and help everyone in the city do their bit for people and planet."
Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: "Our Recycling Improvement Fund offers local authorities the chance to modernise their local recycling facilities and infrastructure and increase local recycling rates by making it easier for households to recycle their waste.
"While we have made significant long-term improvements on recycling, with our overall recycling rates at the highest level since records began, we must intensify our work to reduce emissions and waste if we are to meet Scotland’s ambitious recycling and climate change targets.
"Our Circular Economy Bill, alongside our Circular Economy and Waste Route Map, will help us reduce waste and cut climate emissions by making recycling services better and more consistent across Scotland."
Councillors will also be told in a report that each key element of the programme will be brought back to committee for approval.
