Worcester City Council is set to decide on a new 99-year lease for the Swan Theatre.
The proposal offers Worcester Theatres charity a symbolic "peppercorn" rent of £1 per year for operating in the council-owned building.
The long-term lease would strengthen the charity's position in securing funding and donations.
The council’s Policy and Resources Committee will discuss the proposition on July 30.
The board of Worcester Theatres supports the move.
Sarah-Jane Morgan, chief executive of Worcester Theatres, said: "Worcester Theatres are very excited by the prospect of having a 99-year lease on the Swan Theatre.
"It would allow us to feel a real security for our charity, support our ambitions for the long-term plans of the building and enable us to appeal for more funding, aiding us to continue to deliver a wide and diverse programme of events and participation activities for our audiences and continue to support the cultural provision for Worcester far into the future.”
Councillor Lynn Denham, leader of the city council and chair of the Policy and Resources Committee, said: “Worcester Theatres do a fantastic job of running a great programme of arts and entertainment at the Swan Theatre.
“They have been providing fun for all the family and supporting community drama for many decades.
“This new lease will give them a long-term future at the Swan and shows the City Council’s commitment to Worcester Theatres.
“I hope the committee will support it.”
The committee will decide on the Community Asset Transfer (CAT) of the Swan to Worcester Theatres in exchange for the lease agreement.
Before 2017, when the last long-term lease ended, operations were based on a ‘tenancy at will’ which has been renewed on an ad hoc basis.
The CAT is said to grant greater stability to the theatre’s operation.
Post CAT approval, the city council would carry out repairs to the Swan's exterior, with Worcester Theatres assuming future responsibility.
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