Norah Jones is set to perform at this year's festival
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The New Orleans Jazz Festival has secured corporate sponsorship until 2010, allaying fears that the event would have to be scaled down.
Festival producer Quint Davis said the deal with Shell would allow long-term plans to be made.
The company was involved in last year's festival, the first since Hurricane Katrina devastated the city in 2005.
Organisers expressed concerns about dwindling ticket sales after New Orleans' population diminished.
They were unsure about the make-up of future festivals and being able to rely upon people coming from areas beyond the city to attend the event.
'Criminal ineptitude'
Before the hurricane, it cost arond $10m (£5m) to stage the festival, which was funded largely by ticket sales rather than sponsorship.
The annual event traditionally attracted some 400,000 people to the city, boosting the local economy.
Bob Dylan opened the first post-Katrina festival in April 2006, while singer Bruce Springsteen also appeared, criticising the "criminal ineptitude" of politicians' response to the disaster.
Frank Glaviano, production vice-president for Shell, said: "We wanted to give a gift to the people of New Orleans after all that they have gone through."
This year's event opened on 27 April, and features Rod Stewart, Van Morrison, Steely Dan and Norah Jones on the bill.