Carols by Candlelight will receive $45,000 over three years, after councillors approved a plan at last week's ordinary council meeting.

The event's long-term viability had looked shaky after organisers announced its cancellation in July.

They said there had been a lack of volunteer support for the concert, which had been run by Ballarat Churches for the past 48 years.

Matt Hustwaite, whose great-grandfather had run the event during the 1950s when it was held at Lake Wendouree, stepped in to help ensure the event lived on.

He helped form the not-for-profit Ballarat Carols by Candlelight Incorporated Association and said the occasion could become "a flagship event" and be "a convenient and affordable alternative" to the Melbourne Carols for Western Victorians.

"We feel there is great potential for [the event] to grow significantly, particularly for people coming from out of town," he told The Courier.

"The event has meant so much to so many people over 60 years - it really means a lot to us to be able to keep it going.

"It is a strong personal connection for myself".

Mr Hustwaite also thanked the City of Ballarat for its support, saying "their commitment to the community through partnerships like this is to be commended."

The former host of Hey, Hey, It's Saturday, Daryl Somers, was recently unveiled as the host for this year's event, which takes place on the Sunday before Christmas (December 22) at City Oval.

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The council's funding will see $20,000 allocated to the event this year, with $15,000 for the 2020 date and $10,000 for 2021.

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