The 3,000-seat theatre first opened in 1886 and hosted many music hall performers in its early years, including a teenage Charlie Chaplin in 1903.
Anderton said the theatre played “a significant role” in the development of King Street and the wider town centre.
“Building on the legacy of the High Street Heritage Action Zone programme, we’re developing an ambitious vision for the area that brings together heritage, culture, creativity and regeneration, while strengthening links with the emerging Station Gateway project and creating a distinctive destination for the future.”
The latest funding will help create a temporary 250-seat performance space to allow a programme of pilot productions, events and cultural activities to test the building’s potential as a future home for arts, culture and community use.
The venue is expected to play a central role in a wider vision for King Street and the emerging Station Gateway area.