Blue Mountains Council has allowed Springwood Tennis Club to continue their lease for another 21 years.
The 235-member club use the courts at Spring Street for competition six days a week.
Club officials say the long-term continuation of the lease will give them the confidence to spend more of their own money in upkeep.
The club has been maintaining the site since its construction in 1982.
No objections were raised during the recent public consultation period in relation to the club's proposed licence. But a request has been made to investigate overflow parking options on tennis tournament days.
The decision was unanimously approved at the November 24 council meeting.