The festival attracts thousands against a backdrop of Snowdonia

Stars including Jose Carreras, Jamie Cullum and Martine McCutcheon have all performed at the Faenol Festival, which is held near Bangor.

The money, from the Welsh Assembly Government, was announced by Culture Minister Alun Pugh on Friday.

It will support the staging of the 2005 event in August as the festival goes through a period of restructuring.

Last year, the festival only went ahead after Gwynedd council agreed to cover any shortfall it made.

Organisers had been worried that a rival pop event on the same site, held a few weeks before it, would have an impact on its viability.

Jamie Cullum took part in the Faenol last year

Terfel said he was delighted to hear about the grant, which he said signalled a "sensational line-up of international stars"

"This means we can continue to bring the best of music and biggest stars to the Faenol Festival and our little corner of the planet," he added.

Meanwhile the culture minister described the Faenol Festival as "an important part of our cultural identity and helps to raise Wales's profile within the UK and internationally".

"The festival brings many benefits to the local area, generating tourism and giving the local economy a boost," Mr Pugh said.

"With the mountains of Snowdonia in the background, the festival gives visitors the opportunity to enjoy top class entertainment in a beautiful setting."

Thousands of people have attended the three-day open-air festival since it began in 2000, offering a mix of opera, musical theatre and Welsh language music.

Singers who have performed also include Michael Ball, Claire Sweeney and Hayley Westernra.