The Government has made an 11th hour funding pledge to the U-Turn youth justice diversion program.
Premier Lara Giddings announced the $600,000 finding this afternoon.
Ms Giddings said the money was drawn from the Department of Premier and Cabinet as well as other government resources, but could not provide a breakdown.
It replaces $860,000 a year from Tasmania Police, which expires next month.
But Ms Giddings said the funding was just a stop-gap for the next 12 months and long-term funding for the program would be determined after a statewide review of youth justice programs, which wraps up in November.
The Liberal Party had promised $500,000 a year for four years for the program.
Police Minister David O'Byrne said he stood by comments that pledge was insufficient, despite it being just $100,000 less and four three years more than the government's new commitment.
Almost 300 young offenders aged between 15 and 25 years old have been through the Mission Australia run program in the past 10 years.
Graduates receive a certificate one in automotive and 10 per cent go on to work in the industry.
At the end of the course, graduates give a restored car to a victim of car theft.
Mission Australia chief executive Noel Mundy said the program would have closed its doors after a four-week course finished this Friday if funding had not been received.
Staff had already received redundancy letters, which will now be retracted.
But Mr Mundy said the money was not enough to fund the full program cost of about $930,000 a year, and unless corporate sponsors could be found the program might have to be reduced.