Cumbria's Tullie House Museum & Art Gallery has secured £1.2m funding from the Carlisle City Council for the next financial year, with funding for subsequent years to be negotiated.
In a report to the council's executive the museum said it aimed to attract 300,000 visitors over the course of a year, but said this would be unlikely to happen without a major investment.
During the 2011-12 financial year 252,543 visitors passed through its doors.
In addition to developing existing and new audiences the museum said it wanted to develop its collections and make them more relevant to visitors, and invest in staff and business development and generating income.
The attraction transferred to the Tullie House Museum and Art Gallery Trust in June 2011.
