The Queen Street Santa's been saved by a generous Auckland business.

Family-owned construction company, Mansons TCLM, have offered to pay for the Whitcoulls Santa's installation costs over the next three years.

Skycity has also agreed to contribute $50,000 towards the Christmas icon, after Heart of the City canned him due his pricey $180,000 installation and maintenance cost.

Heart of the City chairman Terry Gould says the generosity of Mansons TCLM and SkyCity means the popular figure and his reindeer will resume their traditional position on the Queen Street Whitcoulls corner this Christmas as usual.