A charity called Blyth Tall Ship has received a grant of £777,200 from the Heritage Lottery Fund to buy and restore a 100 year old wooden tall ship, which will go on show to the public at the Quayside in Blyth.
Trainees and volunteers will carry out the work, which it is hoped will bring to life the region's shipping heritage.
The project will provide training in heritage boat building for 50 young people, with skills at NVQ Level 1, 2 and 3.
An educational programme is also planned for 2,000 school children.
The ship, Haabet, is being bought by the charity from Svendborg in Denmark.
It will be a centre-piece of the Tall Ships Regatta, which is coming to Blyth in 2016.