The money, which has will be given over a three year period, will help the Waterside men in their quest to meet the Irish Football Association's criteria for next season's invitational league.
A spokesperson for Derry City Council said:"The Council has agreed to provide £90,000 over a three year to Institute FC to assist with capital development works.
DUP MLA William Hay welcomed the financial backing for the club. He said he had lobbied council for some time to inject cash into Institute.
"This money must be welcomed, It will be used over three years and represents a significant backing for the club by council," he said.
The official opening of the club's new 'Billy Henderson Stand', at the weekend, is where some of the money has already been used. The man himself, along with Mayor Drew Thompson and IFA President Raymond Kennedy, were part of ceremony party which cut the blue ribbon.
Henderson, who is Vice-President at 'Stute, drew up plans to not just build a new stand, but also extend the changing rooms to include a Drug Testing Room, a First Aid Room and an additional Official's Changing Room. To his and his companies credit, Billy Henderson Properties Ltd, completed the work in time for the IFA inspection in March.