The federal government has put up $262,320 to support the Yukon Quest International Sled-Dog Race, which starts this weekend.

Indian and Northern Affairs Minister Chuck Strahl announced Wednesday that the two-year funding from the Canadian Northern Economic Development Agency will go towards promoting what he called the Yukon's "top wintertime attraction".

In a release, Strahl said the Yukon Quest brings thousands of visitors to the territory and connects Yukoners with their history and culture.

Mushers and their dog teams will begin the 1,600-kilometre race on Saturday, racing from Fairbanks, Alaska, to Whitehorse.

Yukon Quest Canada president Al Doherty said some of the federal money has already been spent to replace an old building at the remote Scroggy Creek checkpoint between Pelly Crossing and Dawson City.

"It was an old sort of cabin, full of large gaps in the wall and fairly cold," Doherty told CBC News on Wednesday.

"So we have gone in there and built a brand-new cabin … which is designed to sort of take care of mushers' needs."

Doherty said the funding will also go towards improving the race trail, as well as developing a marketing strategy for Yukon Quest merchandise.

"I believe there is [a market]; it's just that we have not had the time or personnel to really get on it in the past few years," he said.

"We feel that yes, there is a revenue stream for the Quest there that we can tap into."

None of the federal cash will go into the prize purse, even though it has come up short this year.

Doherty said he is confident other funding sources will make up the shortfall.

Whitehorse residents can look forward to a Quest Fest at the Old Fire Hall on Feb. 15-20, around the time mushers are expected to cross the finish line.