Castlebrae Police Treatment centre in Auchterarder, Perthshire, will receive the money to treat serving and retired police officers, justice secretary Kenny MacAskill said.
The centre, which treats about 1,300 serving officers a year, helps injured officers recuperate and return to work, and the money will go towards paying for a new hydrotherapy pool.
Mr MacAskill made the announcement at the Scottish Police Federation conference yesterday. He said:
"I have visited the centre and am very impressed by the work done to help officers recover. The service should be praised."
Raymond Pratt, the chairman of the Police Treatment Centres, said: "The centre was specially set up to treat officers who were injured on and off duty, and the contribution from the Scottish Government will assist in securing the viability of the centre."