An accord has been reached between the Island Council Government and the owners of the Teatro Pereyra in Ibiza town.
The Matutes family have agreed to let the Council use their theatre, which actually still exists in the building, be used for cultural purposes until 2017.
Though unused for many years, the theatre still has a 400-person capacity both in the stalls and the splendid boxes which line the walls.
Both the building itself and the interior will be renovated, preserving all the best features, including the famous bar featuring the best live music in Ibiza, which is currently housed in the foyer.