Dundee University will receive an extra £40m from the Scottish government as the institution continues to tackle its financial crisis.
Education Secretary Jenny Gilruth said the decision would place specific conditions on the funding which will be paid over two academic years.
Ms Gilruth said the money was “not rewarding failure” but responding to an “unprecedented and unique situation.”
The university currently faces a £35m deficit and was the subject of a damning independent report last week into its financial situation.