Peterborough's Key Theatre has been saved by Selladoor, which operates the local New Theatre.
The venue closed earlier this week despite attempts by campaigners and the local council to keep it open.
It was Peterborough's only subsidised theatre and a home to Mask Theatre and the Kindred drama group.
The city said Key Theatre was forecast to lose £300,000 per year and that it will "look for different, more cost effective ways to deliver services".
Efforts to find a commercial operator came to fruition on Thursday (January 20), thought the deal is still subejct to final negotiations.
A council spokesperson said aspirations outlined in a new cultural strategy remain.
"We are fully committed to maintaining and improving the city’s cultural offer, however our budget position may challenge this work.
"We will face some difficult decisions going forwards and we have to be realistic in our ambitions until we are operating in a financially stable way."