The State Government has committed $1.4m to keep the Overland train service running between Adelaide and Melbourne.
The funding, over four years, will allow twice-weekly trips to continue.
The service also receives funding from the Victorian government, with its current agreement with Journey Beyond due to end in 2024.
Acting Premier Dr Susan Close said the new funding delivers on a 2022 Labor election promise.
“This funding is utterly necessary to make this project work and to make this train affordable,” Dr Close said.
“It is an important part of our tourism offering, it’s an important part of connecting our country towns with each other.”
Also known as the Melbourne Express, the train pioneered inter-capital travel in 1887.