Bryn Terfel performs at the Faenol Festival every year

IMG Arts Entertainment had been concerned a pop event on the same site a few weeks earlier would affect attendances at the Faenol Festival.

Last week it told Gwynedd Council the festival would not go ahead unless it was reimbursed if it made a loss.

On Tuesday night, the council agreed to cover any shortfall.

Tickets would now go on sale on Friday, the company said.

The annual event is due to be held for the fifth time this August Bank Holiday at the Faenol estate, between Bangor and Caernarfon.

I don't want four years' work to go to waste Michael Storrs, IMG

Last week organisers said they were worried about the impact of Summer Pops - also featuring the Beach Boys - which is being held on the same site.

But during a closed session council board members decided that the Events Commission - which attracted both events - would help the festival should it experience any losses.

It is not known how much money will be given to organisers should this happen.

IMG had asked for a guarantee of �50,000 on top of �50,000 already put forward.

IMG joint managing director Michael Storrs said it was their only choice.

"The festival site is one of the prettiest places in the world but there aren't a couple of million people around the corner," he said.

"I don't want four years' work to go to waste."