The scheme for the River Ryton was revealed as part of the Environment Agency’s annual capital programme.
The Government has announced a £150,000 grant for the scheme in 2021/22. A further £3.7m expected to be invested from the Government and other sources over the next six years.
Work is expected to start on the scheme, which centres around the Central Avenue area, in July 2024 and when completed in March 2027, around 250 properties will be better protected.
It comes after widespread flooding in Worksop in 2019.
Chair of the Environment Agency, Emma Howard Boyd, said: “No-one can prevent all flooding and climate change means the risk is increasing, but we can reduce the risks.
“Having completed the government’s previous six year capital programme on time and on budget, better protecting more than 314,000 homes from flooding and coastal erosion, this year we began the government’s new £5.2 billion flood programme.
“These schemes should provide reassurance to communities and businesses, but no-one should have a false sense of security.
" I strongly urge people to sign up for flood warnings and regularly check flood risk on gov.uk.”
A total of six scheme were announced for Bassetlaw as part of the six-year programme, including a flood mitigation project around Grove Lane and Blackstope Lane, in Retford.
The Government has announced a grant of £700,000 in 2021/22 with a further £2.3m expected in funding up until 2026/27.
Work is set to start in August 2022 and, when completed in March 2025, 82 homes will be protected.
Details of exactly what the schemes will include have not been revealed as part of the funding announcement.
Bassetlaw MP Brendan Clarke-Smith said it was ‘ absolutely fantastic’ that the grants had been announced.
"Protecting our communities from flooding is a priority and I will continue to lobby to make sure we receive what we need locally,” he said.
"This will include funding for other areas, including schemes as part of the wider regeneration of the centre of Worksop.”