Perth and Kinross Council will receive £1 million from the Scottish Government to help meet the costs incurred by the fire at 41 Scott Street in June.
One person died and several people were injured in the fire, which occurred during the early hours of 14 June.
Fifty-five households had to be rehoused because of the fire. Perth and Kinross Council had to provide emergency support to residents and businesses in the surrounding area.
So far the local authority has spent £934,000 in the aftermath of the fire.
Demolition work on 41 Scott Street is continuing, and several nearby residents are still waiting to return to their homes.
Perth and Kinross Council leader Councillor Eric Drysdale said: "I am pleased the Scottish Government has agreed to our request for funding to support those affected by the fire and our ongoing recovery efforts.
"I would like to extend my thanks to officers for working together to deliver this funding."
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