The RSC feared 144 performances and two regional tours would have to be cancelled because of a financial shortfall.

But now the RSC, which has bases in London and Stratford-upon-Avon, will receive a £600,000 grant from the Arts Council of England, while the Welsh National Opera gets £260,000 for tours in England.

Arts Council of England chairman Gerry Robinson said: "For the first time in years the Arts Council is in a position to act positively and creatively to find solutions of this nature."

Last year Culture Secretary Chris Smith announced millions of pounds in extra funding for the Arts Council, with most of the money going to the arts and museums.

Chris Smith: Announced extra money for the arts and museums

RSC artistic director Adrian Noble said: "This prompt action goes a long way to help secure the full extent of RSC's programming during the next financial year, which would otherwise have been curtailed."

But Welsh National Opera general director Anthony Freud said the extra cash would only go part of the way to help the organisation out of its financial problems.

"This goes a significant way to avert a significant financial crisis," he said.

"We look forward to working with the Arts Councils of both England and Wales during the coming months to find a long term solution to secure our continuing ability to provide a high-quality operatic service to large areas of regional England and the whole of Wales."

Other grants go to Opera North, which gets £250,000 for its next winter season, and The Royal Court which will receive up to £200,000 to encourage new writing when its theatre in London re-opens this year after refurbishment. Also in the capital, the Contemporary Dance Trust gets up to £150,000 towards performing, touring and educational activities.