Tufnell Park Playing Fields, in Campdale Road, is used by players from all over the borough, and is the home ground for the District Under 11s team, but poor drainage means the surface gets chopped up easily during the winter months.
Now, extra funding has been allocated by the council from contributions the Gunners made as part of the deal to develop the Emirates stadium.
Work will start in summer next year, and will improve the drainage system, meaning the grass will stay in better condition and the site can accommodate two pitches instead of one.
Cllr Paul Convery, Islington Council's executive member for planning, regeneration and leisure, said: "We're committed to providing places where Islington's residents can play sport and keep fit.
"Tufnell Park Playing Fields is one of the best-used sports facilities in the borough, and for too long it has been at the mercy of the weather.
"This investment in the playing fields' future will make sure the site can be used by more footballers because of the improved drainage."
Cllr Janet Burgess, chair of Friends of Tufnell Park, said "The Friends have campaigned for a long time to secure improvements to the only grass pitch in the borough.
"I am thrilled the council has now found the funding to make this happen."
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