The George Town Council voted unanimously at its Wednesday meeting to overturn a decision rejecting a sponsorship deal with Targa Tasmania.
At its meeting in July, the council voted to not support the George Town Super Stage, after concerns were raised about the event falling on Anzac Day in 2017.
The motion passed on Wednesday had four extra conditions relating to the 2017 stage, which restrict road closures, the distribution of hay bales, safeguarding of memorial hall activities and Anzac Day services.
Mayor Bridget Archer commended the collaborative work between councillors and council officers.
“I’ve been supportive of Targa in the past, I continue to be supportive of Targa now,” she said.
“I would just like to recognise that it's pleasing to see that councillors have proactively collaborated to bring forward something else to address the concerns that were raised at the last meeting.”