|Maddy at 4 and what she might look like now|
Home Office minister Lord Bates said the money will come from the Home Office's Special Grant budget.
Madeleine's parents, Kate and Gerry, said they are "extremely grateful" for the allocation.
The Metropolitan Police took over the hunt in 2011 after Madeleine's parents made a plea to Prime Minister David Cameron.
A task force of 37 Scotland Yard detectives spent two years trawling through documents, witness statements and other evidence relating to Madeleine's disappearance from her family's holiday apartment in Praia da Luz, Portugal, in May 2007.
No arrests have been made in four years and the Met is facing calls to wind down the inquiry.
Earlier this month, John O'Connor, a former Flying Squad chief said: "You can't keep chasing shadows, chasing sightings all over the world. It depends on whether the detectives are making any real progress. If there are no firm leads, and by that I mean no substantial operational things like active surveillance on suspects, then I'd have thought they should be considering winding it down now."
The Government set aside 5 million for the Madeleine investigation, Operation Grange, but the bill will top 12 million by next April.
- Daily Mail
Since the beginning of the year there have been no updates of any kind - policy of the new chief detective. One would suspect that there is probably something that has their interest to supply another £2 million without debate or caution that things will begin to wind down. We can always hope and pray.