The organising committee has decided that the event, which looked set to be cancelled or at the very least reduced to a one-day programme, will now go ahead in its three-day format.

The decision was made at a public meeting in the park's bowling green pavilion last week following assurances by local councillors that they will give any support they can to help ensure it continue.

Last month the Press revealed that the popular community-led festival was facing the chop after making a loss last year and struggling to find backing from businesses in the current recession.

However the public outcry against cancellation led the organising committee, headed by YMCA general manager Liz Easton, to rethink.

She said: "We are facing a real challenge to make it work, but given the level of support and the backing of local councillors, it was decided to go with the three day event, which was not an option we were considering.

"We are all delighted that it will be going ahead – everyone needs something to look forward to in these hard times.

''A lot of people won't be going abroad on holiday and I know that the young people of Kirkcaldy really look forward to the festival to mark the start of their summer holidays."

Councillor Susan Leslie, whose ward takes in Beveridge Park, said: "The councillors are all fully supportive of the festival in its current form and we will do everything we can to ensure that the organisers get the support they need."

The festival will run from July 4-6, with the Friday afternoon given over to young bands from the Kirkcaldy area.

There will also be a host of activities led by local groups and organisations, with stalls, displays, artwork and competitions, including the popular skateboard, skate and bike competition on the Saturday afternoon, and live bands in the festival marquee on Friday and Saturday nights.

"Any group which would like free publicity or to do a bit of fundraising should get in touch with us or anyone wishing to sponsor the event in any shape or form, whether financially or by donating some of their time to come along and help out would be very welcome," added Liz.

David Henderson, chairman of Kirkcaldy West Community Council, also welcomed the news the festival would go ahead.

"The festival is a great asset to the community and it would be very disappointing if it was not going ahead due to lack of funding.

"Fife Council is giving with one hand and taking away with the other with the extortionate charges for helping to facilitate the event, and the Community Council will give any support it can to the event."