The have signed up for three more party conferences in Birmingham - meaning a £50 million boost for the city, the Birmingham Post understands.
There had been fears that party conferences were a thing of the past after Labour leader Sir Albert Bore for political events amid cutbacks.
However, a deal has now been agreed with the (ICC) which will see the Conservatives return to the city in 2016, 2018 and 2020.
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It means a major boost to the Birmingham economy with each event bringing in about 14,000 delegates, boosting spending by around £17 million and bringing international coverage.
The Post understands party chairman Grant Shapps will reveal the return during this year's conference, which kicks off on Sunday.
The Conservatives would not confirm the deal when contacted by the Post but a senior party source said there was a desire from within the party to come back.
He said: "There has been speculation over recent weeks that we wouldn't return to Birmingham following changes to major event funding by the council.
"None of us are under any illusions that local authorities have a responsibility to spend more wisely and make cuts where necessary.
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"However, to make the assumption we'd rule out Birmingham for our future conferences based on this is absurd.
"The West Midlands is the heartland of what the Conservative Party is about - hard-working people who are proud of what they do. This is why we have held our conferences here again and again.
"Birmingham has hosted us fantastically well over many years, so we will undoubtedly be back."
Conservative Party conferences have become a valuable source of income every two years since 2008.
But it seemed a return was under threat after Sir Albert announced plans to focus funding on events from priority business sectors such as life sciences, advanced manufacturing, digital and creative industries.
The is setting the city council back £1.48 million - 95 per cent of its major events budget - but it is understood the latest deal with the ICC is not backed by council funding.
Sir Albert Birmingham had been joined by Manchester and Liverpool in cutting its "subvention" fund for such events.
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The party has not officially confirmed the return to the city but an official statement issued by the chairman's office said: "Obviously we enjoy being in Birmingham but we have no plans to announce future venues until this year's conference."
However, the return will be welcomed by hotels, restaurant and bar owners with the main conference and about 300 fringe events bringing in spending.
This year's Tory conference will be the 11th political party conference the city has welcomed since 2008 and the final autumn conference to take place before the 2015 General Election.