Alnwick Christmas Lights Committee has reached a sponsorship agreement with businessman Meenu Malhotra, chairman of the Malhotra Group.
The company, which has healthcare interests in the town, is putting up an initial £7,000 with further annual payments of £5,000 until 2023 at least.
The news has been warmly welcomed by the volunteer group which has previously faced an annual struggle to raise funds.
Committee chairman Gordon Castle said: “Thanks to the tireless efforts of the Duchess of Northumberland, we have met a gentleman whose company wishes to help sustain a community activity that has been in place for decades, but secure funding to keep going.
“Our budget requires at least £14,000 per year to put on a display that seems to have overwhelming public support, but struggles to find income.
“The team of 18 local volunteers works long hours without a penny in payment to bring pleasure to the town and brighten up the winter streetscape, having already started in May to prepare displays for the switch-on night of November 22.
“Mr Malhotra, whose company through their Prestwick Care business is already building the new care home facility in Lisbon Street and who already owns Hillcrest Nursing Home, recognises our town’s unique strength of identity and wants to put something into it.
“I cannot over emphasise how relieved and grateful we are to have this lifeline, and on behalf of the team and the town I thank him and his board for their generosity in providing an initial £7,000 together with annual payments of £5,000, to be reviewed in five years.
“We will still need financial support from the town council and businesses to keep going, but I feel we now have a sufficient basis to plan with confidence. Before this we were peering into the abyss.”
The Malhotra Group is currently developing Beech Tree House, a new, purpose-built 86-bed care home.