Tropfest has been revived about a month after a funding debacle forced the short film festival to be cancelled.
The festival, which has run for 23 years and was due to take place on December 6, will now return on February 14 to Centennial Parklands after insurance company CGU stepped in the save the event.
The announcement, made at Centenial Park today, followed a tumultuous four weeks after Polson revealed there had been a "terrible and irresponible mismanagement of funds."
Polson, with actor Simon Baker in tow, told IF it had been a "crazy" four weeks.
"Welcome to the last day of the worst four weeks in Tropfest history," he said.
"Tropfest was finished, but instead today I am delighted to announce we have been given a lifline, a miraculous lifeline."
Polson, who is currently directing US TV series Elementary in New York, said he was still trying to get to the bottom of what led to the funding shortfall.
"When I found out my reaction was nothing short of stunned," he said.
"I spent a few frantic days on the phone. But the shortfall was double what I was orginally told. I knew at that point Tropfest was over and my first thought was for the filmmakers.
Polson, who also presented the 16 finalists for the event, said he thought there was no way to rebound from the disaster at the time of the cancellation.
"In 23 years of Tropfest it was the first time I had lost all hope," he said.
"A day or two after the news broke CGU told me they would like to help Tropfest.
"They were also concerned about the many small businesses that would suffer as a result. I thought I was dreaming – it was the perfect phone call at the perfect time."
Polson said he had now sacked the previous management company and that he was continuing with legal action against the company's managing director, Michael Laverty.
He insisted that nothing "corrupt" occurred, just "bad management".
"We are now rebuilding the structure of the company with new systems in place to avoid another terrible situation brought about by bad management."
More than $1.6 million people have attended a Tropfest event since it was established in 1993. It attracts a national audience of about 150,000.
Tropfest finalist Tristian Klein, who came third in 2013 with fellow filmmaker, Nick Baker, said he always had faith that the festival would go ahead.
"There was a huge outpouring of support," he said.
"Australians feel a real connection to this festival.
"It's also an incredibly important springboard for emerging filmmakers."
Baker and Klein will screen their short Postcards to Ulay at this year's event.