The funds were allocated to the fashion week and eight other events from the festivals and events contestable fund, allocated once a year.
A total of $135,000 was granted from the fund.
The chairwoman of iD Fashion Week, Susie Staley, yesterday said it was "fantastic news".
In total, the council has given the fashion week committee about $110,000 this year.
Each year, it gives the committee about $35,000 when it agrees on its annual plan.
It has granted another $5000 for a prize for the Emerging Designer Awards on top of the $70,000.
Ms Staley said earlier this week the committee had still required between $70,000 and $100,000 for the programme to run as it had been set.
Ms Staley said she had hoped for money from the contestable fund and was pleased at the amount the fashion week had been given.
The grant meant the committee could secure a guest designer and invite journalists and guests who would help to promote the event and the city.
Also allocated funds from the Dunedin City Council's festivals and events contestable fund were: Dunedin Mid Winter Celebrations Trust, for next year's Dunedin Mid Winter Carnival, $15,000; Te Runanga o Otakou Ltd, for National Manu Korero, $10,000; Otago Sports Car Club Inc, for Otago Rally, $10,000; Dunedin Brass Inc, for brass band championships, $10,000; Matariki/Puaka Festival Steering Roopu, for Matariki 2010, $5000; Dunedin Fringe Arts Trust, for Dunedin Fringe Festival 2010, $5000; New Edinburgh Folk Club, for Whare Flat Festival 2009-10, $5000; Santa Parade Trust, for this year's Santa Parade, $5000.
