Denmark's two major broadcasters DR-TV and TV2/Danmark have reached an agreement with the Association of Danish Film Producers on how to spend the $8.7m (DKR60m) they are obliged to invest annually in local film production.

It was last year's media agreement which dictated the amount, but it is the first time that the TV stations have signed a contract, and only after months of negotiations and after the intervention of the Danish Film Institute.

The deal outlines a set of rules for the eight to 10 features the broadcasters participate in with an average 20% of production costs.

"We are pleased with the agreement, because we now know where we stand once and for all, instead of having to negotiate all new film projects individually," said Kim Magnusson of M&M Productions, who is also chairman of the producers' association.

"The money from the broadcasters is more than three times the amount claimed by the former legislation. However, with the cuts in the budget of the Danish Film Institute, we are still $14.4m short of the original four-year action plan".

"This deal should kick-start the feature productions which have been in limbo because this deal has taken so much time to sign," said Henning Camre, head of the Danish Film Institute.