The future of Scotland's youth theatre appeared to have been secured last night as departing First Minister Alex Salmond announced a surprise £1 million funding package for youth arts.

Scottish Youth Theatre (SYT), based in Glasgow, was denied a three-year funding package from Creative Scotland in its latest funding shake up last month.

However, in an unexpected move only arranged this week, the £1m package, with £750,000 from the Scottish Government and £250,000 from Clyde Blowers, has been given to not only SYT but the National Youth Choir of Scotland, National Youth Orchestra of Scotland and YDance for the next three years. SYT's case had been ­championed by alumni including Blythe Duff and Colin McCredie and the company met Culture Secretary Fiona Hyslop earlier this week.

A spokesman for Creative Scotland welcomed the funding boost, and denied the new cash announcement had undermined its regular funding decisions.

SYT chairman John Scott Moncrieff said: "This wonderful endorsement by the Scottish Government of Scottish Youth Theatre and our fellow national youth performing arts companies is very welcome.

"Our priority is to ensure that we can continue to provide world-class theatre arts experiences for as many of Scotland's young people as possible. We look forward to further fruitful and constructive meetings with Creative Scotland."

Mr Salmond said: "This funding will ensure we continue to deepen our young people's engagement with culture and the arts, providing a pathway to arts careers, with all the benefits that such participation can bring."