Flights between Dundee and London will continue next year.
The service to and from Stansted will run 11 times per week and funding was due to run out at the end of this year but it has now been confirmed the UK Government will continue to give the route its financial backing.
Airline Loganair will run the flights and has committed to increasing the size of plane on the route from a 33-seater to a 48-seater.
Earlier this year London City Airport launched a bid to provide a service between Dundee and the capital under a Public Service Obligation (PSO), which protects routes that boost tourism, connects the UK and encourages economic growth, but aviation minister Paul Maynard confirmed the service will continue to operate from Stansted.
Had the London City bid been successful, it would have provided up to three return trips a day, bosses said.
“I am pleased to announce the extension of the London to Dundee route,” he said.
“This decision supports jobs and allows businesses to access global markets, as well as connecting friends and family.”