St Andrews University will take over the running of the award-winning Byre Theatre from August 1 subject to formal consent from Creative Scotland.
Fife Council’s Executive Committee gave unanimous backing to confirm approval of the lease to the university at a nominal rent of £300 per year.
The committee agreed in April that the university should be the preferred bidder to lease and run the council-owned facility, with access for community groups throughout the year.
The decision was deferred so councillors could receive more information about the proposals.
Recommending approval, Fife Council’s head of leisure and cultural services Grant Ward said assurances had been given regarding use by professional arts organisations.
He said Creative Scotland’s consent still had to be formally “nailed down” but it was more a case of “dotting the Is and crossing the Ts”.
He confirmed the initial three year lease with a view to extending it to 25 years would have no financial outlay for the council.
A “reasonable and sensible balance” had been struck, he said.
St Andrews councillor Dorothea Morrison said this was a “great opportunity” for the university and community to work in partnership but the community had to be assured it would still gain access.
Taybridgehead councillor Tim Brett said he was optimistic the Byre had a “positive future” but found it ironic that “Creative Scotland was pressing for more production theatre when it was that organisation’s grant cuts that led to the problems encountered at the Byre.”
A St Andrews University spokesman said: “We’re delighted the bid received unanimous approval and that we will have the very welcome support and goodwill of Fife Council and the Friends of the Byre in realising a new vision for the theatre as a vibrant centre for the arts in Fife.
“Our proposals have always been founded on a model which mixes university use with broad community access and professional theatre, at no cost to council tax payers in Fife.
“We believe these plans herald an enormously exciting future for the Byre.
“And while they will still require the final approval of Creative Scotland, we very much hope Scotland’s leading arts organisation will show the same goodwill and can-do philosophy of the Friends and Fife Council.”