Ministers will today pledge the cash to the Solent Enterprise Zone, to build a new one-kilometre road and to clean up contaminated land.
Gary Jeffries, chairman of the Solent Local Enterprise Partnership, described the announcement as “excellent news” for the wider area.
He said: “Significant construction work is already under way on the Solent Enterprise Zone and this enables us to start work on a new area – the Gosport Waterfront.
“The £7m grant will unlock this area’s considerable potential by enabling us to invest public money in critical infrastructure and make early progress in delivering new commercial development, creating additional local jobs.
“In the slightly longer term, we will be seeking investment in a comprehensive redevelopment for the Waterfront.”