Opposition politicians in Brighton and Hove are expected to vote together to overturn a proposed cut in funding to the annual Pride event.
The organisers of Pride, which attracts more than 150,000 people each year, had been concerned that Brighton and Hove City Council was to scrap £25,000 towards its costs.
The council claimed that the money was not needed now that the event was run on a commercial basis.
But the organisers said that it would help to cover outgoings before the parade on Saturday 2 August.
The Latest website reported that Conservative and Labour councillors were likely to unite to overturn the cut.
It is not yet clear whether they will be joined by members of the Green administration when decisions on the council’s budget are made at Hove Town Hall on Thursday (27 February).
Paul Kemp, of Brighton and Hove Pride, said: “Pride will be thrilled if this funding is agreed to support the LGBT community parade and sustainability of Pride.
“The community parade is one of the highlights of the city’s calendar that the whole community engages in.
“We look forward to an even better community parade this year, celebrating our freedom to live.”
The annual pot of money has been disputed for the past three years.
Last year it was taken out of the yearly recurring grants and turned into a one-off amount with nothing allocated for the event this year.
Opposition groups have now presented separate plans to divert money elsewhere in the council’s budget to maintain the £25,000 grant.
At least one of these is likely to be supported by the other.
Conservative group leader Geoffrey Theobald said: “Brighton and Hove’s Pride is an internationally renowned event which last year was attended by 160,000 people and contributes an estimated £13.5 million to the local economy – in other words, money in the pocket for our local businesses and traders.
“It also generates significant sums of money for local LGBT and HIV good causes – over £43,000 last year.
“We are, therefore, delighted to be able to put forward a budget amendment to continue to give £25,000 to the Pride Festival to ensure that the much-loved community parade can go ahead.”
Labour group leader Warren Morgan said: “Labour backs Pride and believes that a small investment of £25,000 is well worth it to secure the parade for 2014, a parade which is enjoyed by thousands each year and which generates huge amounts of business for the city’s shops and restaurants that provide thousands of jobs for local people.”