GlastonBarry organisers have reached a new five-year licence agreement with Vale of Glamorgan Council.
It means the popular tribute festival at Romilly Park, which attracts up to 6,000 people a day, will continue to be held until at 2029.
GlastonBarry, now in its 12th year, is believed to generate nearly £2.2 million a year for the local economy, boosting the Vale's hospitality and service sectors with around half of all festival-goers travelling from outside the Barry area.
According to the county council, the new agreement was reached after Mack Events sought "greater certainty" for festival planning in the long-term.
Mack Events director Matt Blumberg said: "We are delighted to be working with the Vale of Glamorgan Council again on GlastonBarry."
"We recognise just how important this event is to the people of Barry and beyond, and as a Barry resident, I am so proud to be able to guarantee this landmark music festival at Romilly Park for the next five years."
"I look forward to this year's event and the many more to come and wish to thank the council for their ongoing support and all those who attend our events year-on-year."
Under the terms of the agreement, the central field at Romilly Park will be enclosed for up to seven days to allow the event to be setup and taken down, while the rest of the park stays open to the public.
All performances wil run from midday to 9pm - with Friday being given over to GlastonBarry Juniors, aimed at younger audiences, while the Saturday and Sunday shows are limited to over 18s.
Deputy council leader Bronwen Brooks added: "We are proud to support GlastonBarry, and recognise the huge value it brings to Barry and the wider Vale."
"Mack Events have been outstanding partners and have worked closely with us to ensure the festival is safe, well-managed and enjoyed by all."
"This new licence agreement gives them the confidence to continue to build on their successes, and we look forward to seeing GlastonBarry thrive and grow for years to come."
This year's GlastonBarry takes place from Friday 25th to Sunday 27th July.
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