Flights between Dundee and London have been secured until the end of the year.
The route, which is operated by Loganair, is propped up by state subsidies – and £800,000 will see the service running for an extra six months.
It has been hailed as a fresh boost to businesses and visitors, although some have questioned the use of public money to keep the route going.
The money was put up by the UK and Scottish governments, as well as Dundee City Council, following an agreement to extend the route’s public service obligation.
All parties say they are hoping to secure to a longer term deal.
Lord Dunlop, the Scotland Office minister, said: “I am pleased that we have been able to reach this agreement and create the chance for a longer term solution for this important connection for Dundee.”
Derek Mackay, Scotland’s Transport Secretary said: “Following on from the recent announcement of a new service between Dundee and Amsterdam, this once again shows the impact of the Scottish Government’s continued support for the airport.”
Ken Guild, leader of the city council, said: “Dundee is a city undergoing a major positive change with UK and international businesses looking towards the city as a place to operate from, and flights to and from London have played an important role in that element of our long term regeneration.”
Loganair will continue to run two daily flights each weekday in both directions, as well as one on Sunday.
The current £2.85m deal runs from July 2014 to the same month this year.