The Post Office is to receive £1.3bn of extra funding over the next four years, Business Secretary Vince Cable has announced.
Mr Cable told the House of Commons that the funding would be used to reform the current network.
He stressed "there will be no programme of closures under this government".
Earlier this month, Mr Cable unveiled the government's plans to privatise Royal Mail, while the Post Office may be mutualised.
"Our funding will be used to reform the current network, to change the underlying economics, and so reverse the years of decline and secure its long-term future," Mr Cable said.
"The Post Office will be able to invest, improve its offer and win new revenue streams."