The world-renowned Astroland amusement park has a new lease on life.

The venerable Coney Island institution, which appeared doomed after its Labor Day closing, will instead reopen for one more season next year under a deal announced Wednesday with the developer behind the neighborhood’s planned $2 billion makeover.

“Astroland is very pleased that its 300 employees will continue to have jobs, and we want to thank our many supporters and fans who worked so hard to keep Astroland open,” said Carol Albert, whose family owns the beachfront attraction.

The last-ditch agreement came after it appeared the park’s classic rides had gone dark for the last time on Sept. 9. But weeks of negotiations between Thor Equities and the Albert family produced a short-term deal barely three months before the old lease expired.

Terms of the agreement were not made public.

The vintage attraction survived for decades despite hard economic times, the crack epidemic and a decaying neighborhood to anchor Coney Island since the Kennedy Administration. Eventually, the 275-foot Astrotower and the bumper cars will give way to the glitzy development proposed by Thor Equities.

Thor had already reached deals with eight boardwalk vendors, including the popular “Shoot the Freak” concession, on similar one-year extensions. Astroland is now scheduled to open for its last summer on March 16, 2008.

The Alberts received $30 million in a deal with Thor for the 3.1-acre stretch off the boardwalk. But Ms. Albert was hopeful of squeezing in one final go-round for Astroland and its employees, many of them neighborhood residents with years of service.

Thor has spent more than $100 million to acquire about 10 acres of Coney Island real estate in hopes of turning the area into a year-round tourist attraction.

Ms. Albert sold her property to Thor last year, convinced the business would not survive during the local rebuilding.

It was 1962 when Ms. Albert’s father-in-law, Dewey Albert, unveiled his outer space-themed park on the beach once billed as the nation’s playground. It evolved into a Coney Island fixture, alongside two other local creations: the hot dog and the roller coaster.

The park endured as the neighborhood turned seedy before its recent rebound. The Alberts were one of the last local holdouts until their decision to sell the property last year.

This past summer, Thor scuttled plans to include apartments and luxury condominiums as part of its redevelopment effort, bowing to complaints from critics.