Ministry of Steampunk, Lincolnshire County Council, City of Lincoln Council and Lincoln BIG have signed a five year agreement which will see the annual Asylum festival stay in Lincoln until 2026.
The festival will take place over the August Bank Holiday and centres around Lincoln Castle and the Bailgate area of the city.
Having grown over the last decade, it now attracts in the region of 100,000 visitors to the city and is Lincoln's second busiest event weekend after the Christmas Market.
John Naylor of the Ministry of Steampunk, said "Lincoln has provided a spectacular backdrop for the steampunk community’s creativity since 2009 so we are delighted to be able to return.
"We are supremely grateful for the support and encouragement of Lincolnshire County Council, City of Lincoln Council and Lincoln BIG together with Lincoln Cathedral and our other local partners.
"We are looking forward to growing and developing this unique event over the next five years to build a spectacular imaginative festival that Lincoln can be proud of.”
Cllr Ric Metcalfe, Leader of City of Lincoln Council, said: “I am very pleased that, collectively, we have been able to reach such a positive conclusion that will see Steampunk return to the city for at least the next five years.
"In doing so, it will open up a number of opportunities to build the event year-on-year to make it even more spectacular.”
Cllr Lindsey Cawrey, executive councillor for culture at Lincolnshire County Council said: "I'm so pleased Steampunk is returning next year. We're all working together to ensure residents, locals and those from further afield will have a great event.
"Lincoln Castle, as always, will be an excellent venue for this and will provide a spectacular backdrop for Steampunk makers and traders. There will be a lot to look forward to!"
Sarah Loftus, chief executive of Lincoln Business Improvement Group said: "I am delighted that we have a five year deal with Steampunk, local businesses will be pleased to welcome back this event for the city.
"We are hoping that this five year pledge will allow us to build on the event each year and it will become even more spectacular."
For more information about the Ministry of Steampunk, visit www.asylumsteampunk.co.uk