The Poppy Project, the human trafficking charity run by Eaves Housing for Women, is to receive £2.4m from the Home Office over the next two years.
The project began three years ago and provides accommodation and support for 25 women who have been victims of trafficking.
The Government already funds the project, but this extra money will pay for an additional ten spaces on the scheme and enable it to create a four-strong outreach team.
This team will work with police, immigration services and sexual health outreach projects to identify and approach women involved in the sex industry who may have been trafficked.
Denise Marshall, chief executive of Eaves, said the grant showed the Government recognised its responsibilities towards victims of trafficking.
"It paves the way for other grant-making organisations to fund similar projects and tells them it's an important area," she said.