Leicester City Council has thrown a financial lifeline to Phoenix, one of the city's largest arts centres.
Covid-19 related disruption has left Leciester Arts Centre, the charity running the project, with increased contractor costs for its restoration.
The council offered £500,000 from resources it set aside to help the city’s recovery. Arts Council England matched the donation to bridge the £1m shortfall.
Work on the venue, including new cinema screens and a digital gallery, will start this summer.
"Phoenix is a vital part of the city’s cultural offer, and the increase in audiences and visitor numbers resulting from the work that needs to be carried out will enable the venue to be much more financially secure," said Councillor Piara Singh Clair.