Organisers of Perth's Sculpture by the Sea event announced on Tuesday a shortfall in federal funding would stop the event from going ahead next March, after arts agency Creative Australia declined to back it.
On Friday, Prime Minister Anthony Albanese announced a $1.5 million package to revive the event.
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Organisers welcomed the decision, but have said it is too late for the event to be staged in 2025.
A $1.5 million package to revive the Sculpture by the Sea exhibition in Cottesloe has been announced by Prime Minister Anthony Albanese, but organisers say it's too late to save next year's event.
Earlier this week, Sculpture by the Sea founding CEO David Handley said he'd been forced to cancel the iconic event in 2025 due to a lack of federal funding from arts agency Creative Australia.
The Federal Government has now committed to providing $1.5 million to ensure the event goes ahead for two years.
"It's not just an artistic event, but part of the rationale for the government funding is that it brings tourists here to Perth and WA, not just from other parts of Australia but it is a global event that has global recognition as well," the prime minister said.
Mr Albanese said he hoped the immediate funding would see the exhibition take place next year.
But Mr Handley said while the money was "greatly" welcomed and a "huge relief", it would not be enough to ensure the event could go ahead in 2025.
He said that financial support was needed last month to ensure it could go ahead.
"Almost none of the artists have started their sculptures," he said.
"We've warned them that the exhibition was unlikely to go ahead a few months ago."
However, the artists were "over the moon" that it wasn't the end for Sculpture by the Sea.
"There's just this huge amount of relief from everyone … because we still needed to find the money by late May next year anyway," he said.
"It seems as though our cry for help's been heard, but that's only been possible because the people of Perth and the Perth media have got behind Sculpture by the Sea so much."
Mr Hadley said he hoped the federal government's funding pledge, which was matched by the Coalition, would mean bipartisan support going forward.
"They may have different motivations, they may have exactly the same motivations [but] all I know is this is a good result for the people of WA and the sculptors of WA and what people want will be back in 2026," he said.
'We're not mugs', says opposition
WA Liberal Senator Michaelia Cash accused Mr Albanese and his government of trying to 'con' West Australians.
"We're not mugs," Ms Cash told reporters.
"Sculpture by the Sea is not going ahead in 2025 because of the failure of Mr Albanese and the Labor Government to provide it with funding.
"The Coalition ensured this event went ahead year after year when we were in government.
"This is the perfect example of him flying in to clean up a mess of his own creation."