Upper Norwood Library has been saved from the threat of closure after Croydon Council stumped up an extra £60,000 to help run it.

Residents feared the library in Westow Hill, which receives funding from Lambeth and Croydon councils, faced the axe only a year after a £1.1million revamp.

More than 3,000 people signed a petition protesting at the level of funding which was presented to Croydon Council last month.

The authority today announced a £10,000 a year grant increase for 2007/08 and pledged further rises of £10,000 on the library's base budget over the next two years.

However, the council demanded that in return for the extra cash the library should be run more efficiently and be brought in line with other libraries in the borough.

Cabinet member for culture and sport, Councillor Steve Hollands, said: "While the continuation of this unique library has never been in doubt, I appreciate that the extended freeze on grant by the previous administration was beginning to raise doubts about the council's commitment. I therefore expect this £10,000 cumulative a year increase in our contribution to remove any lingering uncertainty. It will certainly help make up for the disappointment of my predecessor's broken promise. But, the extra money has to be earned. Paying out more without securing something in return is not the way we operate in Croydon."