Earlier this year, the artists behind the Fishmarket Gallery feared they may have to close the venue.

But in March, Northampton Borough Council agreed to extend the lease on the council-owned building and on Wednesday, the authority's cabinet is expected to sign off the deal.

Papers which will be presented to cabinet members during the meeting at the Guildhall said the gallery was an asset to Northampton and should have its future protected.

Discussing the work of the artists at the venue, the council's asset manager, Simon Dougall, said: "They have increased the diversity of the arts in the town and have provided a location for emerging artists to showcase their work."

He added: "If the premises were vacated, the benefits to the town of this art centre would be lost. The council would also incur business rates of £9,000 a year together with other costs until the property could either be let or ultimately sold for some alternative form of development.

"There could also be a resultant loss of credibility with the Arts Council, which might have wider adverse impacts on the town's ability to attract funding for other arts activity.

"The reputation of the council within the wider arts community could also be damaged."

The council has said the annual rental value of the former market building is about £30,000 a year.

But the authority plans to offer the Fishmarket to the Northampton Arts Collective rent-free for 10 years.

As part of the deal, the council would also provide a fund of £10,000 a year to pay for any repairs and maintenance needed at the Fishmarket.
The deal would allow the council to pull out of the agreement in either 2014 or 2016 if, for any reason, it needed to take back control of the building.

The building was closed as an indoor market in 2006, when the few remaining traders inside the building moved onto the nearby Market Square.