A final decision on the grant is expected in February

The Northcott Theatre in Exeter faces losing its annual £547,000 grant - about a third of its total income - from April 2009.

Banner-waving supporters handed in a 26,000 signature petition at a meeting of the regional Arts Council in Exeter.

The Arts Council has said it has concerns about the way the theatre is run and has already warned management.

A final decision will be made by the national Arts Council in February.

'Incredible response'

Andrew Brewerton, chairman of the Arts Council South West, said the petition could affect the decision.

He said: "It's an impressive response and of course the Arts Council will take it into consideration."

Local MP Ben Bradshaw, who is supporting the campaigners, said: "I have never known a response like this in 11 years as MP for Exeter.

"It has been incredible and I hope it will help the Arts Council to reconsider the decision."

The theatre reopened in December after an 11-month, £2.1m revamp.

It has had support from a number of actors including Robert Lindsay who started his early career at the theatre and now appears in the BBC sitcom My Family.