The birds caused "extensive damage" by making holes in parts of the spire made of cedar at St Mary's Church in Headley near Epsom.
A grant of Â£78,000 was awarded from the Heritage Lottery Fund.
The money will enable the cedar parts to be replaced with oak, which will be treated to stop the infestation of the insects sought after by woodpeckers.
The Rector, Rev Linda Harknett, said: "We are delighted that the vital repair work can now proceed, enabling St Mary's magnificent spire to endure as an important feature of the local landscape, visible for miles around."
The church has close links with nearby Headley Court rehabilitation centre for wounded service personnel.

The Dow closed up 0.7% at 18,506.41, while the S&P 500 index added 0.5% to close at 2,163.75.
Data showing China's economy expanded by a better-than-expected 6.7% in the second quarter boosted sentiment.
In Japan, the benchmark Nikkei 225 rose for a fifth straight day by 0.7% to close at 16,497.85 points.
An outperformer is messaging app Line, which has seen shares closing 31% up in its trading debut in Tokyo after gaining more than 26% in New York on Thursday.
Australia's S&P/ASX 200 rose 0.3% to finish the day at 5,429.60 and South Korea's stock market closed 0.4% higher at 2,017.26.
Hong Kong's Hang Seng closed 0.5% higher at 21,659.25 and the Shanghai Composite closed flat at 3,054.30.
Margaret Yang from CMC Markets in Singapore said the global share rally was due to a "flood of liquidity".
"Equity valuations have been elevated by the prolonged low interest rate environment and markets are expecting more monetary easing from the Bank of Japan, European Central Bank and Bank of England to support the fragile economy," she said.
Singapore's stock market resumed trading as normal on Friday after a major disruption the previous day.
All trading had to be halted after a technical glitch affected its confirmation system. This is the fourth major interruption to its trading system in two years.
Singapore Exchange's chief executive, Loh Boon Chye, issued an apology for the interruption.
"Our recovery time has to be better and we must minimise downtime for market participants," he said in a statement.
Singapore's Straits Times index closed 0.6% higher.

His left-wing Social Democrat party (PSD) had accused him of failing to carry out necessary economic reforms.
The prime minister was involved in a power struggle with party leader Liviu Dragnea, who was barred from office after a conviction for voter fraud.
Mr Grindeanu lost the censure motion by 241 votes to 10.
The decision by his own party and its liberal ALDE allies to oust him was seen as a first, even for Romania's turbulent politics. For the motion to pass they needed a parliamentary majority of 233 votes.
The PSD won elections in December only a year after losing power. Within weeks, protests erupted across the country over a decree seen as weakening anti-corruption measures in one of the European Union's most corrupt member states.
In February the EU warned the government in Bucharest against "backtracking" in its efforts against corruption. Although Mr Grindeanu withdrew the decree, the crisis weakened the new government and soured relations between the prime minister and Mr Dragnea.
Mr Dragnea criticised his rival's performance in government on Wednesday, accusing him of failing to push through "the most ambitious programme since 1989". Some commentators have argued that his removal was more about relaxing measures aimed at tackling corruption.
Mr Dragnea, while being the power behind the left-wing party's throne, cannot take power because he was given a suspended jail term for vote rigging and also faces trial for alleged abuse of office.
His first choice as prime minister, Sevil Shhaideh, was turned down by President Klaus Iohannis in December. A new nominee from the ruling coalition will also have to be approved by the president.
Far from being the sick man of Europe, Romania's economy is showing the highest growth in the EU, at 5.6% in the year to March 2017.
However, its justice system has been under EU scrutiny ever since the country joined in 2007.
In its most recent report this year, the EU's executive praised Romania's anti-corruption agency (DNA) but warned that the fight against corruption was under serious threat from political and media attack.
Work has started to repair a spire on a Surrey church after it was badly damaged by woodpeckers.
[NEXT_CONCEPT]
Asian stock markets have recorded further gains after shares on Wall Street hit fresh record highs and China economic data beat expectations.
[NEXT_CONCEPT]
Romanian Prime Minister Sorin Grindeanu has been forced from power after only six months by his own party, in a no-confidence vote in parliament.