Culture Secretary Fiona Hyslop has been called to give evidence to MSPs about the award of £150,000 of public money to T in the Park.
Ms Hyslop has been invited to appear before the Education and Culture Committee amid allegations of cronyism surrounding the funding deal.
It follows the announcement by Jennifer Dempsie, the former SNP adviser at the centre of the row, that she has abandoned her bid to become an SNP MSP in next year’s Holyrood elections.
Ms Dempsie set up meetings between T in the Park promoters DF Concerts and ministers including Ms Hyslop ahead of the application for the funding.
She was working on a contract for DF Concerts as a project manager on the festival, which moved to a new location at Strathallan this year.
Opposition MSPs have accused Ms Hyslop of breaking the ministerial code but First Minister Nicola Sturgeon has said she acted appropriately.
Committee members have agreed to take evidence from Ms Hyslop on T in the Park at a meeting this month.
Convener Stewart Maxwell said: “During the discussion of the committee’s work programme, which included the issue of T in the Park, it was agreed that it was important to understand the decision-making process involved in awarding funding to T in the Park.”
Liberal Democrat MSP Liam McArthur, a committee member, said: “It is still unclear as to why the Scottish Government granted a profitable company £150,000 in state aid for an event that had already taken place.
“Statements from the Culture Secretary so far have told us next to nothing, so I welcome the fact that the Education Committee has agreed to take action.
“It is the role of parliamentary committees to scrutinise government spending.”
Conservative culture spokeswoman Liz Smith said: “This is very welcome news as it is imperative that the Culture Secretary puts the full facts on the table.
“For far too long, the funding of T in the Park has been clouded in mystery with the inevitable result that the public felt the Scottish Government had something to hide.
“Before any decision is made about T in the Park 2016, everyone needs a categorical assurance that there will be full transparency over the decision-making process which was so absent for T in the Park 2015.”
Labour called for the First Minister to make a statement to Parliament on the controversy.
The party’s business manager James Kelly said: “The questions around this deal are much bigger than the political ambitions of a former SNP adviser.
“I welcome that the culture minister is to face a Holyrood committee but there should be a statement to the full chamber.
“T in the Park is a successful business, at a time when our public services are facing unprecedented cuts from Holyrood gifting £150,000 in taxpayer cash seems very hard to justify.
“The SNP need to come clean on this. They should release the business case that was put before them for state aid and the First Minister should make a statement to Parliament explaining why she gave taxpayer cash to a successful business.”
A Scottish Government spokesperson said: “Culture Secretary Fiona Hyslop looks forward to giving evidence to the Education and Culture Committee further to the full answer provided to Parliament on August 14.
“T in the Park is one of Scotland’s most popular and successful cultural events, generating £15.4 million for the economy last year and supporting tourism and jobs.”