The 2019 festival in March, which drew 3535 attendees over four days, was billed as the final ever festival.

In the lead up, organisers said it could not continue due to the resignation of the volunteer event manager and health and age of committee members.

The following month the committee reached an in-principle agreement with council and Horsham Sports and Community Club that the latter two groups would support the festival so it could continue for the next three years.

At its meeting on Monday night, council unanimously supported a recommendation $5000 be contributed to the 2020 event.

Angela Murphy, council's director of development services, said she recommended support for the first event only so the festival could eventually become self-sufficient.

"The plan for the money will be for it to go towards hiring a part-time event manager," she said.

"We thought $5000 was a fair allocation based on council's previous contributions. Once we get through this next year I think the festival should be able to generate enough revenue to support an event manager on its own."

Horsham Country Music committee member Lyall Wheaton said the committee would meet on Tuesday night to discuss council's decision.

"We'll be engaging with the HSCC to ascertain the amount they will commit, and whether the 2020 festival can go ahead," he said.

"When we entered into the agreement, Horsham Country Music inc. said it would step away from managing the event when a festival co-ordinator was employed to reduce the amount of work volunteers had to do."

Mr Wheaton said the long-term plan was for a new organising committee to take over managing the event.

Glenn Carroll, HSCC's manager, said the group had not yet made a decision on how much support it would provide.

At the meeting, Councillor John Robinson paid tribute to the festival's volunteers.

"It's an event like this where we lose a volunteer manager that we see the true value of volunteers," he said.

"We talk about the fundraising the committee has done for various charities, but they're also raising between four and nine hundred thousands dollars for the economy."

Mayor Mark Radford said the independent, not-for-profit group Regional Arts Victoria had expressed interest in supporting the festival because of the opportunities it created for young musicians.

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