The £32m will go towards new roads and transport infrastructure, the provision of utilities and ecological measures needed to protect wildlife and plants, including new areas for species of bat, replacement of hedgerows and ongoing monitoring by environmental specialists.
The Government wants this to kick-start building of 5,500 new, 83,000sq m of office space, retail units, four schools, various community buildings, sports pitches and the park.
According to the Department of Communities and Local Government, which administers the funding, more than £1bn will be invested in construction and a further £2bn in the local area over the next 15 years.
This funding announcement is part of the allocation of funding earmarked by the Chancellor in last year’s Autumn Statement, for the delivery of at least 50,000 new homes.
Prisk said the Government was determined to get Britain building again.
"We have set aside considerable funding to assist large housing programmes like Sherford, and over the coming months we will continue looking at other schemes that would benefit from our support."
Plans for the new community were adopted in 2007 with widespread local support but progress had stalled.
Plymouth City Council leader Tudor Evans said: "Sherford has been on the horizon for a long time and goes back to the 1990s. It’s one of the three areas identified in our growth agenda for development and I’m delighted that the Homes and Communities Agency are awarding funding to help this city fulfil its potential."
Other big building projects benefitting from this funding pot are a 6,300-home site at Cranbrook near Exeter, a 6,000-home site at Fairfield near Milton Keynes, and a site for over 22,000 homes at the Eastern Quarry development near Ebbsfleet in Kent. A further £234,000 of funding for the Cranbrook development was also announced today.