Supporters of Birmingham's MAC and Sampad arts centre will discover next week whether a #12.8 million redevelopment scheme is to go ahead.
An Arts Council decision to contribute #5.4 million towards the modernisation project will bring to an end ten years of uncertainty about the MAC's future.
The future of the MAC buildings have hung in the balance since 1996 when a council feasibility study warned that the Cannon Hill complex required substantial improvement and a larger theatre in order to survive commercially.
But plans for an #18.5 million redevelopment collapsed in 2004 when Advantage West Midlands, the regional development agency, refused to finance the scheme.
A new proposal, which will be backed by the council cabinet on Monday, involves a scaled-down version of the 2004 proposals.
A report to the cabinet warns that the MAC has been developed in piecemeal fashion over the years, is becoming increasingly expensive to run and faces the risk of closure on health and safety grounds.
Plans for a new auditorium have been deferred. The new proposals involve partial demolition of the MAC building and the construction of a new three-storey building.
It is also proposed to add a pedestrian bridge across the River Rea to create a new entrance.
A planned funding package would see the city council contribute about #6 million, the MAC #1 million and the Arts Council #5.4 million. The Arts Council is due to make a decision on November 28.
The redevelopment plan includes partial demolition, a new three-storey core through the centre of the existing building as well as major improvements to disabled access, more exhibition spaces, a new ticket office and entrance and two major new studios for media and school work.
Coun Ray Hassall, (Lib Dem Perry Barr) cabinet member for leisure, sport and culture said: "This wonderful project will bring with it vital improvements to a very tired building and will offer a base for further development of two of the council’s successful major arts clients.
"I have no doubt that the plans will greatly enhance not only the building, but also Cannon Hill Park."
If funding is approved, the project will begin in Spring 2008 and will be due for completion in Autumn 2009.