Auckland's iconic giant Santa will once again look out over Queen Street this Christmas after new funding has saved the tradition.

Whitcoulls Santa Claus

The announcement comes after Auckland's Heart of the City board yesterday said it could no longer justify the $180,000 annual cost to store and install Santa and his reindeer.

Construction company, Mansons TCLM, has opted to take responsibility for the installation over the next three years and SkyCity will contribute to annual storage as well as $50,000 to keep the Santa statue alive.