Plans to transfer the operation of Carlisle's Tullie House Museum and Art Gallery to a new charitable trust have been approved in principle by the local authority.
Carlisle City Council (CCC) confirmed that the decision is now subject to the completion of a legal framework, including the partnership and funding agreement.
CCC leader Mike Mitchelson said: "This decision means that the City Council has ensured a positive future for one of the city's most important assets."
It is thought the new trust could be in place by spring 2011.