Auckland's famous Santa parade will march on this year after securing funding from the council following a shortfall.

The council confirmed it would take over funding the 85-year old event from Auckland Tourism Events and Economic Development (Ateed) to the tune of $45,000.

"Ateed's initial call was the wrong one," Auckland Mayor Phil Goff said.

"I'm pleased that the right decision has now been made so that our kids can continue to enjoy the excitement of seeing Santa in the city."

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Last November, Ateed stopped funding for the parade from this year which left the event with a $45,000 shortfall.

The event attracted hundreds of thousands of people each year and parade participants numbered in the thousands.

Ateed yesterday confirmed its decision to transfer the funds to the council's arts, community and events department.

The decision followed advocacy from Goff as well as councillor Cathy Casey.

"I am delighted that Ateed has reconsidered their funding position and acknowledges there is a public good component to events like the Farmers Santa Parade," Casey said.

"It has been enjoyed by hundreds of thousands of Aucklanders for the last 80 years and I am pleased that its future has been secured."

Last November, an Ateed spokesman said the parade no longer fitted a new 2018-2025 major events strategy - designed to grow tourism and the local economy in a sustainable way.

"This is based on the fact that [the parade] is not a big driver of domestic tourism into Auckland."