Preston's artists looks set to move into one of the city's most historic buildings.
The PAD Gallery and Shop will relocate to the former Post Office building on Birley Street next month.
Preston Council leader Ken Hudson has confirmed the site is the preferred location as the gallery bids to cut the losses being made at its current base in Church Street.
The bill for keeping the facility open is around £100,000 a year, but it makes just £340.16 a month after costs.
Coun Hudson said the authority had "exciting ideas" for the artistic hub which was threatened with closure by its crippling costs.
He said: "The life of the PAD Gallery is quite assured and we have made tentative inquiries about funding it through money streams which we have within the council.
"It has retained a lot of the artistic culture which Preston has such a rich history of and that is something we are very keen to keep hold of."
It is expected the gallery and shop would take up the ground floor of the listed Post Office building.
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