The Mary Rose is set for a dazzling new home after scooping £21m of lottery cash.
The windfall will see the 463-year-old ship housed in a world-class museum at Portsmouth's historic dockyard.
Since being raised from the seabed 25 years ago, the flagship of Henry VIII's fleet has been sitting in a temporary hall.
Without funding to finish her conservation and give her a permanent home, trustees feared the Tudor relic could be lost forever.
But the Mary Rose has been saved after beating competition from bids across the country, including Kensington Palace and the Tate Gallery in London.
Chief executive of the Mary Rose Trust, John Lippiett, said: 'It's Portsmouth's ship and Portsmouth should be thrilled.
'This going to be a jewel in the city's crown.'
The £35m project will bring the ship and the museum – currently at opposite ends of the dockyard – under one roof, reuniting the Mary Rose and thousands of her unseen artefacts for the first time in almost 500 years. Trustees plan to open the dockyard attraction in 2011 in time to exploit the 2012 Olympics.
And after gradually drying out the timbers the Mary Rose will be displayed for the first time in her full glory, with no physical barrier between the ship and the public.
Mr Lippiett said: 'This is the finest 16th century time capsule anywhere in the world and this funding shows it's at the top of the nation's priorities.'
The money – nearly a tenth of the Heritage Lottery Fund's annual budget – is even more sweet for the Mary Rose Trust after its first bid was rejected for not being ambitious enough.
But the trust still faces the tough challenge of raising the extra £14m.
It has already raised £3.5m
and has set itself just over a year to find the remaining £10.5m.
Ideas include forming a club of wealthy donors who will sign up to give long term monthly donations.
The trust is also looking into sponsorship, asking companies to provide services free of charge or at a reduced rate in return for publicity.
Mr Lippiett said: 'I'm confident we'll raise the money.
'We're at the mercy of people and how worthwhile they find us.
'And we're looking into the possibility of sponsorship deals which could be a great help.'
Portsmouth South MP Mike Hancock said: 'I've seen the plans and it's really exciting. They've refreshed the idea of the Mary Rose and captured people's imagination and this will keep Portsmouth on the world map.'
HMS Hurworth left her home port of Portsmouth yesterday bound for the Baltic.
