Malvern Hills District Council has handed over the final part of the funds to clear a £600,000 deficit at Malvern Theatres.

After lengthy discussions, the council and Malvern Theatres Trust have now signed the Joint Working Agreement. It describes how the theatres and the council will work together to ensure the future success of the popular attraction.

The deficit dates from the refurbishment programme at the Malvern Theatres, which was otherwise profitable last year.

The council had considered clearing the deficit by striking a deal with a commercial operator to run the venue.

However, following public pressure, it opted instead to use its reserves to clear the debt and agree a new deal with the current management.

"The signing of the agreement and final instalment of the money provides a firm financial and operational footing for the theatres and a sound basis for a productive partnership between the two organisations," said Coun Tom Wells, leader of Malvern Hills District Council.

The agreement has already helped to secure £150,000 over the next three years from West Midlands Arts and another £9,000 from Worcestershire County Council.

"Malvern Theatres is an arts venue of regional importance, so it's right that it is supported regionally and not just by the taxpayers of Malvern Hills," said Coun Wells.

Clive Richards, chairman of Malvern Theatres Trust Ltd, said: "After extensive discussions between the parties, we are delighted that the issue has now been resolved.

"We can now look forward to a bright future for the Theatres for the benefit of everyone far and wide who makes use of this fantastic facility, especially the local residents."