A £1m investment will fund planting of nearly 250ha of new native woodland at 35 locations across England.
The funding, the first round of the JIGSAW (Joining & Increasing Grant Scheme for Ancient Woodlands) Challenge Fund, was announced by forestry minister Elliot Morley.
JIGSAW, which has total funding of £5m, was launched last year by the Forestry Commission to help ensure the survival of native woodland and save endangered species.