Institute FC's Riverside Stadium is undergoing a £1 million upgrade, complete with new security fencing
The cash will be spent on a new East Stand for the ground, with 650 extra seats, a media suite, a control room and toilets.
Security measures including CCTV cameras and security fencing
will also be fitted.
The work is currently underway and expected to be completed by March 2011.
First Minister Peter Robinson told the BBC that the improvements would provide "safer and more attractive family friendly" facilities for fans.
Billy Gillard, a member of Institute's development committee, added: "In terms of comfort and safety we will have one of the best stands around, and that includes good facilities for people with disabilities.
"Hopefully this will enable us to attract more players and more spectators, and it will be good for the Drumahoe area all round."
The Riverside Stadium is located in Drumahoe, Londonderry and has 550 seats.