In addition to the cash from the HLF, Bassetlaw Council has pledged £117,000, and Waste Recycling Environmental (WREN) has promised a further £50,000.

The huge cash injection will go towards revamping the museum and attracting more visitors.

"When we have finished the work we plan to do the museum it is going to be fantastic," said museum curator Sam Glasswell.

"It will enable us to reach a lot more people than we have been able to before. In particular, we will be able to better serve people with disabilities and offer a better service to schools."

"At the moment there is lots of information but nowhere for people to sit and read through it, but our new education room will enable people to do that."

The curator added that the museum would have to close for nine months in order for the improvements to take place.

"We ask the public to be patient with us while we are closed and we will still be trying to offer a service to them during this period by taking the museum out to them," he said.

"If all goes according to plan all the work will be completed by spring 2008."

Roger Ranson, head of economic development and tourism at Bassetlaw Council, said the future of the museum looked bright.

"This is brilliant news, and my heart-felt congratulations go out to all the hard-working staff who spent many hours putting the bid together," said Mr Ranson.

"The museum is one that residents should be proud of and it is a thriving and engaging place which delivers an excellent and relevant service. Funding projects such as this is a vital function of Bassetlaw Council."

HLF regional manager Emma Sale said the museum could now "bring local history to life".

"People will be able to get dressed up as a character from the original house and tour the museum from that person's unique point of view," she said.