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Haverhill Town Council has agreed in principle to take over the management of the town's Arts Centre, provided sufficient financial safeguards for its future are provided by St Edmundsbury Borough Council.
The town council went into private session to discuss the issue and all 15 members present agreed to the plan.
If agreement is reached, it would be on the basis of the reduced budget or around a £160,000 grant to run the centre, which has already been agreed by councillors.
Gordon Mussett, Haverhill town clerk, said by law the borough council could only guarantee its grant figure from year to year, not permanently.
If the town council took over the responsibility for the centre and its staff, it would want the borough to meet any staffing or other costs arising from grant reduction in future years.
Although there was less flexibility in the budget than hoped for, Mr Mussett said the town council had identified savings that could be used to enhance the centre's arts programming.
If the borough council agrees to the plan it then has to be agreed by charity commissioners, and there must be a three-month transfer period for staff, so it would be October at the earliest before a full transfer could take place.
Mr Mussett said the town council would hope to work closely with the borough during that period, if the takeover is agreed.
St Edmundsbury Borough Council's Leisure committee met last week but put off discussion about the Arts Centre until after the town council had met this week.