Bungay Medical Practice will use the grant to create a two-storey extension with additional clinical and waiting space for staff and patients.
There will also be refurbishment to existing rooms.
It is intended that work on the project will commence in March 2024 and be complete by March 2025.
The funding has come from a £3m pot of Community Infrastructure Levy grants that has been approved and distributed by East Suffolk Council and is made up of contributions from new housing developments.
A spokesperson for NHS Norfolk and Waveney said: “NHS Norfolk and Waveney Integrated Care Board is very pleased to be working with Bungay Medical Practice and their landlord, the Bungay Medical Centre Charitable Trust, on this scheme which will benefit the local community.
“Together we have been working closely with colleagues at East Suffolk Council in preparing the bid for CIL funding and are delighted to have the support of the council on this proposed project which would see a two-storey extension to the existing premises.
“This extension would provide new clinical rooms and additional waiting space, along with increased space for staff and patients within the practice.
“The funding would also cover refurbishment of some of the existing space and improvements to patient, reception, and clinical areas.
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“This proposed expansion for Bungay Medical Practice will help to improve patient access to care and provide improved facilities to support healthcare staff to deliver high-quality and timely care for patients.
“The extra space will also increase training opportunities for medical and clinical placements, helping to support recruitment and retention initiatives within general practice.”
Cllr Kay Yule, East Suffolk Council’s cabinet member for planning and coastal management, said: “Developer contributions help us to support improvements to essential facilities in the district, for the benefit of local communities.”