A Derby theatre, that was threatened with closure when the company that ran it entered administration, has been saved after the University of Derby completed a deal to manage the venue.

It is hoped that Derby Playhouse will be ready to reopen to the public as early as October, with work now underway to prepare the venue following the university's acquisition of a 99-year lease. Senior executives from the University of Derby agreed a deal with Derby Playhouse Ltd and its administrators, Tenon, to take control of the theatre's sub-lease. Retail group Westfield currently owns the theatre site's freehold, while Derby City Council holds the head lease.

The university now plans to establish Derby Playhouse as a 'learning theatre', offering students the chance to use the experience of preparing and staging live performances to enhance degree course work. It is also expected that the university's theatre arts programme will relocate to the venue, supporting a range of courses including sound and light technology, events management and fashion.

Vice-chancellor of the University of Derby, John Coyne, said: "This building is an important cultural asset in the city and whilst it has been closed there has been a definite void in Derby’s cultural scene. When it became clear that there was a real risk that the theatre might be lost, we had to act decisively to secure its future." Hari Punchihewa, pro vice-chancellor at the university, added: "It has been a fairly complicated process because of the complex issues surrounding the trustees and the administrators but we have realised our ambitions and now want to ensure the students, staff and people of Derby benefit from the building as soon as possible."