Reading Entertainment have released a statement saying the cinema in Dubbo will remain open after an agreement with Charter Hall was made in regard to the lease at Riverdale Shopping Centre.
The new seven year lease, which commences in June 2014, sees Reading Cinemas recommit to its existing 2,100sqm of space in the shopping centre.
The cinema announced earlier it would close, but they have remained open on a week-by-week basis while negotiations were being undertaken.
In their statement Reading Entertainment say they have operated the complex since June 199.
"The company looks forward to maintaining its strong relationship with the Dubbo community."
Reading Entertainment's managing director Wayne Smith said "the decision was a great outcome for all concerned, particularly our loyal customers who have supported the cinema for many years."
"We are very excited about staying in Dubbo and continuing to provide the best entertainment we can.
"Late last year the cinema was fitted out with world class digital projection systems that have greatly improved the film presentation.
"Therefore, it's a natural progression for the complex to undergo a face lift and refurbishment which is planned for September this year.
"We look forward to showcasing out new offer and kicking off to a brand new era of movie going in Dubbo."
Charter Hall's PFA fund manager Steven Bennett said they were pleased with the seven year lease.
“We are very pleased to be extending our relationship with Reading Cinemas for another seven years.
"The cinema is widely popular within the local community and this is a great result for the centre and importantly for all our shoppers.”
Dubbo mayor Mathew Dickerson said it was pleasing the cinema would remain.
“Dubbo is a thriving regional city that services a population of 160,000 throughout the Orana region.
"It is pleasing to see that Readings Cinema has invested in the future of Dubbo and renewed their commitment to the city and will continue to provide diversity in our cultural and entertainment experience.
"The Riverdale Centre contributes a positive economic impact to our City and is an important shopping destination for residents of the region.”
Reading Cinemas will host a 'red carpet' film premiere night upon completion of the refurbishment.