The space will be created by developing an area of derelict land within the existing cemetery boundary, along Windmill Road, and will provide room for burials for another 10 years.
The decision was made on Tuesday (April 21) as without this space it is estimated the cemetery would have had to close to new burials in the next three to five years.
The money will be spent on landscaping and construction, including levelling the ground, planting grass and wildflowers and constructing new paths and an access road.
Keith Townsend, executive director for environment and customer services, said: “Well done to our cemeteries team for the recent award which recognises the first-class service they deliver to people at a very sensitive time.
“The council has a legal duty to provide burials to residents either inside or outside of the borough. This latest development completes the original expansion works which took place in 2003 and will ensure we can continue to provide a cost-effective service to local residents for the near future.”
Ealing Council was recently awarded with the Gold Standard from the Institute of Cemetery and Crematorium Managers (ICCM) which recognises the high quality of services delivered in the borough.