Scotland's national orchestra, the Royal Scottish National Orchestra, last night launched its new season with two significant signings.

The first was the extension of the contract for the lauded French music director, Stephane Deneve, until 2011, and the second was the signing of a cheque from the Scottish Executive for £750,000 which will help guarantee financial security for the Glasgow-based orchestra.

Deneve, 36, is extending his time at the orchestra, which has drawn wide acclaim, for a further three years, having started in 2005, and says he has made Scotland his home, buying a house in Glasgow's south side and finally moving officially from his apartment in Paris.

Eighteen days ago the RSNO officially came under the direct control of the Scottish Executive. Previously, it was controlled by the Scottish Arts Council along with its fellow national companies, the Scottish Chamber Orchestra, Scottish Opera, Scottish Ballet and the National Theatre of Scotland.

Simon Woods, its chief executive, said the cash injection would mean that in the future the orchestra would not be working with a deficit, a "historical" situation which has persisted for some time.

The orchestra is currently enjoying success in ticket and subscription sales, having radically overhauled its marketing last year: subscriptions to its seasons are up by 50% in Glasgow and Edinburgh, while overall attendance figures are up 35%.

"We are very grateful for the show in confidence in our creative and organisational ability that we have received from the Scottish Executive," Mr Woods said.

"In England a few years ago all the orchestras had a period of financial stabilisation that never really happened in Scotland, and I hand it to the executive for recognising that.

"We will not be reporting a deficit this year and we are not planning on having one in the future years, and now it is more a question of how we can grow and develop the organisation. The executive laid down some very strict criteria before we received the funds, but we met them."

Mr Woods also said that the orchestra would definitely be moving out of the Henry Wood Hall, its current base in the west end of Glasgow, which he said had outlived its purpose.

"We have to move," he said. "We are at the very early stage of a feasibility study but our hope is for a new building which would have a modern rehearsal space, administration and an education centre.

"Our goal is to be in the new place in five years at the outside - and it will be in Glasgow, we are not leaving the city."

The orchestra's new programme features several major ballet scores, and new works commissioned from Guillaume Connesson and John Corigliano, while Neeme Järvi, the esteemed conductor, returns to the RSNO with a programme of Wagner.

Deneve's term ambitions include taking the orchestra on foreign tours on three continents, recording the orchestral works of Roussel, and finishing a cycle of Mahler symphonies.

He said: "When something is totally right, it needs little explanation. "

During the 2007-2008 season the RSNO's traditional Edinburgh venue, the Usher Hall, is closed for renovations, which has rendered the orchestra homeless.

During this time, the RSNO is to perform instead at the Edinburgh Festival Theatre.