COLCHESTER'S Firstsite gallery has won a stay of execution after securing funding of more than £1.6 million over the next two years.

The Arts Council today announced Firstsite will be funded until 2018 under special monitoring arrangements.

It will be offered funding for two years, from 2016 to 2018, of £814,512 each year.

The funding is crucial for the gallery's survival.

In February, the Arts Council’s National Council decided Firstsite and the English National Opera had failed to satisfy the conditions of national portfolio membership for the period 2015 to 2018.

These include having robust business plans and governance in place.

Instead, they were given special funding agreements.

The Arts Council’s National Council has now reviewed the situation and decided both had made good progress in improving their operations.

However, they said both organisations have further work to do to ensure their future sustainability and both will not be invited back into the Arts Council's national portfolio of organisations until more progress is made.

Both will continue to be closely monitored by the Arts Council over the next two years as they review their business models and plans for the future.

The Arts Council said Firstsite has made substantial progress in improving its business operations including the development of a business plan with improved financial controls and the recruitment of new board members.

The two years of funding will enable the organisation to continue operating, find a new full-time director, develop its artistic programme and move forwards in making further necessary changes to its business model.

The Arts Council will work closely with partner funders Colchester Council and Essex County Council to monitor and support the gallery’s progress.

Darren Henley, chief executive of Arts Council England said: “Both organisations are making good progress in addressing their respective challenges but there is more to do if both the English National Opera and Firstsite are to become resilient enough to thrive artistically and economically in future.

“Both ENO and Firstsite are capable of extraordinary artistic work, and we look forward to seeing further improvements in the governance and business models of both organisations."