"We have just received confirmation from the council," tournament director Bill Medder said yesterday.
"This is great news and will ensure that we can build on and improve the event.
"The council realises that we have done a good job promoting Dunedin. The funds will be used for the administration side of running the event."
The three-day event will be held at the Balmacewen Golf course from February 25-27 next year.
There were 47 professionals at this year's event and more are expected next year.
"It is the major seniors tournament in the South Island and we hope to be able to grow the event," Medder said.
"Most of the professionals who competed this year indicated that they will be back."
The Otago Golf Club has the rights from the PGA of New Zealand for the next two years.
It was the first professional tournament in Dunedin since the 2004 Scenic Hotels Dunedin Classic at Chisholm Park.
"We hope to keep it going but we are dependent on sponsorship," Medder said.
"It costs us $100,000 to run the tournament."
Obtaining sponsorship was crucial to making up the prize money, as the professionals on the Legends Tour would not come to Dunedin to play for nothing.
Medder said it was essential the Otago event continued to be part of the new southern swing for seniors, which featured tournaments at Pegasus, Millbrook and Kelvin Heights last season.
The pro-am takes place on the first two days of the tournament, while play on the Sunday is restricted to professionals.
