The government has announced an extra £1.5m of funding for Hull as part of its UK City of Culture 2017 celebrations.

The funds will contribute to the refurbishment of the nationally-renowned Ferens Art Gallery, with £500,000 going towards the city’s ambition to stage the 2017 Turner Prize exhibition.

Councillor Stephen Brady, leader of the council, said: “This is fantastic news. As part of our wider investment proposals for the Ferens and other cultural assets, it will help us send a clear message to institutions like the Tate, the Royal Collection and the National Gallery that Hull is ready to host the world’s most sought-after exhibitions in 2017 and beyond.”

Martin Green, chief executive of Culture Company added: “This is a huge vote of confidence in Hull’s ability to deliver a world-class year of culture in 2017 and in the power of culture to be a catalyst for economic regeneration.

“We are working with our partners to bring work of national and international significance to Hull in 2017, and to ensure that the year leaves a lasting legacy for the city through revitalised cultural assets.”

Hull hopes to follow Derry-Londonderry, UK City of Culture 2013, which hosted the Turner Prize as part of its year-long cultural programme. This year’s Turner Prize exhibition will be hosted by Tramway in Glasgow.