The concert by American group The Jacksons is to move from the Villa Marina gardens to the building’s Royal Hall.
Last month the Isle of Man Examiner revealed that the concert was going to clash with a rally stage on the promenade outside and concert goers might be hard-pushed to hear the seventies band’s songs.
The Department of Economic Development today announced that Villa bossed had reached an agreement with the Rally Isle of Man organisers over the arrangements for The Jacksons concert and Rally Stage both currently scheduled for September 11.
A department spokesman said the solution came ‘following lengthy and constructive discussions’.
David Cretney MHK, the politician responsible for tourism and the Villa Marina/Gaiety Theatre complex said: ‘The Department of Economic Development endeavours to work directly with a wide variety of stakeholders to grow the number of visitors and spend by promoting the attractions, events and activities that makes the Isle of Man a desirable destination.
‘As such we are delighted that we have come up with a solution that enables these two important events to go ahead and that we have been able to work together with the Rally organisers in such a positive way.’
John Gill, chairman of Rally Isle of Man, added: ‘We thank the department for its understanding over this matter, and its endeavour to find a solution that hopefully allows both events to be an outstanding success.
‘The location for the ceremonial start and opening closed-roads stage on the promenade has proved a huge hit with thousands of spectators since it was introduced, and this year rally fans can welcome the return of the MSA British Rally Championship to the island, alongside all of the other sections of the event.’
Anyone wishing to watch the Rally Stage from the Colonnade Balcony will be able to do so, however, as with previous years numbers will be limited and access will be to and from the Back Marina Lane gates only.
Tickets to The Jacksons’ gig cost £75.
Their biggest hits were in the seventies and they have not been in the charts for many years.