The festival on Calton Hill draws thousands of spectators to its annual re-enactment of the arrival of the May Queen and the ritual killing of the Green Man, as well as the traditional Celtic fire procession.
Organisers said the decision to cut the normal £8000 fee for an event of Beltane’s size to £1000 would ensure the festival takes place in 2013.
Beltane Fire Society producer Tom Watton said: “We are over the moon that the council respect our event and recognise the positive benefit it has on the city. There’s such a wide mixture of people that get involved in this – from office workers to quirky artistic types.
“It’s a fantastic opportunity for everyone.”