Hull Truck Theatre has been given £250,000 by Arts Council England to help secure its future.
The emergency grant covers the financial year 2014-15 and means the theatre has received eight Arts Council bailouts, totalling more than £1.75m, since 2011.
It has been awarded under a system of "financial intervention", for organisations at "immediate and serious financial risk", and is on top of the theatre's regular £540,680 funding from the Arts Council, which will rise by £250,000-a-year from this April.
Hull Truck, which first came to prominence in the 1970s and became nationally renowned under the auspices of playwright John Godber, has faced financial challenges since moving from Spring Street to its £15m Ferensway home in 2009.
The theatre is due to be one of the main venues when Hull is UK City of Culture in 2017.
The Arts Council says the funding will help consolidate the theatre's new business model and ensure it plays a pivotal role in the 2017 City of Culture celebrations.
Michelle Dickson, Arts Council England's director of the north, said: "We have awarded additional investment of £250,000 to Hull Truck to support the theatre's increased stability and to consolidate the organisation's new business model.
"This investment will greatly enhance the theatre's resilience for the foreseeable future and will enable it to play a full role in Hull's UK City of Culture programme in 2017."
Artistic director Mark Babych, who took over in 2013, said: "Hull Truck sees culture as a powerful regenerative tool for our city, enabling it to realise its ambitions and affirm its commitment to overcoming social and economic challenges.
"Hull Truck will secure new partnerships in the public, private and voluntary sectors that will contribute to a thriving City of Culture 2017, creating a lasting legacy that reflects Hull's new-found confidence as a modern, thriving and forward looking city."
Martin Green, chief executive of Hull UK City of Culture 2017, also welcomed the extra funding.
He said: "Hull Truck is a key partner in Hull 2017 and will be absolutely integral to the delivery of a world-class year of theatre.
"The new team have an exciting and unique artistic vision, with recent successes demonstrating their ability to attract existing and new audiences.
"I am pleased that the Arts Council has recognised this with an uplift in funding, which will ensure the theatre is able to grow as a business and play a central role in Hull's year as UK City of Culture."
