Tower Hamlets Council agreed to restore its funding for the Greenwich & Docklands International Festival (GDIF) at a budget meeting on Wednesday.
The full £25,000 of funding that was withdrawn from the budget will be reinstated.
The amendment to the budget was proposed by Labour councillors and then accepted by Mayor Lutfur Rahman at the meeting.
The council also received letters from local people as part of a campaign to rethink the proposed cuts.
GDIF will run from Thursday 21st June until Saturday 30th June. It will include outdoor theatre, dance and arts from the UK and the rest of the world.