Auckland Council is to take full ownership of film studios associated with international productions such as Xena Warrior Princess and The Lion, the Witch and the Wardrobe.
Auckland Council Investments Ltd already owns 44.4% of Auckland Film Studios Ltd, the largest studio in the country.
The council-controlled company will now buy the remaining shares from Tony Tay Films Ltd.
The $1.5 million deal will be settled on Thursday.
Auckland Mayor Len Brown says it was smart business move with little risk for ratepayers.
Mr Brown says the price was good, so "in the end, commercially, it was a no-brainer in my view."
He says the council will now be able to make a considered decision about what to do with the studio in the future.
Auckland Council Investments Ltd also owns Auckland Port and part of the city's airport.