Watermans Arts Centre in Brentford has claimed victory in its funding battle after the Arts Council decided to continue its funding for a further three years.
The Arts Council has confirmed it will match-fund the popular High Street centre to the tune of £240,000 until 2011, with the rest coming from Hounslow Council.
The decision comes almost a year after Watermans was told by ACE it intended to withdraw its £500,000 funding completely from April 2008.
An Arts Council spokeswoman said: "Our London Regional Council reconsidered the funding proposal for Watermans at its meeting on September 25 and decided to renew funding but at a reduced level, specifically to support the continued delivery of Asian arts in the area.
"This decision was ratified by our National Council at its October 7 meeting."
"Watermans have accepted the Arts Council's decision and we will be meeting with them in the near future to discuss the details of their new funding agreement.
"We are pleased that the matter has been brought to a mutually acceptable conclusion."
The Arts Council original decision was made amid claims Hounslow Council was not fully committed to Watermans. But despite denials from council chiefs the funding body went ahead and axed the grant anyway.
Watermans then applied for a judicial review of the decision but the Arts Council suggested it would reconsider its decision if the action was dropped.