Birmingham City Council is to guarantee the debt-burdened pension fund of the National Exhibition Centre (NEC).
The NEC employs more than 1,000 people
In a statement, the council said it would "manage the consequences of the pension fund deficit".
The NEC, which employs over 1,000 people, said the fund deficit, at the last evaluation, was £16.4m.
Leader Mike Whitby said: "Giving this guarantee will ensure the NEC continues to boost the local economy and the wider regeneration of the area."
He added: "It plays a significant role in putting Birmingham on the global map as a venue for business, tourism and leisure.
"As a city council, our links with the NEC are hugely successful and this proposal is clear evidence of the degree of trust we have in the partnership."
The NEC and the Pension Fund trustees launched a 15-year recovery plan for the fund in 2005.
The NEC operates the National Exhibition Centre, The NEC Arena, The National Indoor Arena, The International Convention Centre and Symphony Hall.
Of its 1,000 employees, some 630 are members of the pension scheme and there are 1,200 other members.