The Van Gogh Museum has settled its funding dispute with the Dutch government. The deal clears the way for a 104 million euro renovation.

The museum had warned it might close without more state funding. It asked for its annual subsidy to rise by 2.5 million euros. The government said the existing 8.5 million euro subsidy was enough.

Both sides went to mediation this year. A court hearing was postponed. The settlement ends the legal fight.

The Masterplan 2028 project will cost 104 million euros. About 76 million is for maintenance, 23 million for sustainability, and 5 million for improvements. Work starts in 2028 and will take three years.

The dispute centred on a 1962 agreement. Under it, the Dutch state must house the collection of Vincent van Gogh’s nephew.

The museum gets around 1.8 million visitors a year. It holds the world’s largest Van Gogh collectionThe museum will stay partly open during the works. Visitors will see selected works from the permanent collection.