Iconic Northbridge venue Picabar is celebrating its new lease on life with free beer after an outpour of public support for the venue to remain at Perth Cultural Centre.

Culture and Arts Minister David Templeman and bar owners Brian and Conor Buckley on Tuesday announced a five-year lease had been negotiated, with an option to extend for another five years, after 12 months of uncertainty as expressions of interest were sought by the Perth Theatre Trust.

Picabar will stay at the Perth Cultural Centre after a permanent lease was negotiated with stakeholders.

The backlash heaped pressure on stakeholders and the PTT, which then gave the bar owners a chance to negotiate a longer lease while it considered other EOIs.

The Buckleys said they would put on 10 kegs supplied by some of their craft brewery partners from midday on Tuesday after the massive community response last year against Picabar closing.