A £50 million deal to secure the future of a Titian masterpiece for British art lovers has been announced.

A campaign was launched last year to purchase Diana and Actaeon by the Italian Renaissance artist after its private owner decided to sell.

It was feared the painting could be lost to a private buyer unless the cash was raised to secure it at its current home in Edinburgh.

Now the Renaissance painting will be shared by the National Galleries of Scotland and the National Gallery in London after campaigners reached their cash target.

The work has been on public display in the National Galleries of Scotland and London for more than 200 years and they were offered first refusal by the Duke of Sutherland.

It is part of the Bridgewater Collection, said to be one of the most important private collections of Old Master paintings on loan to an institution in Britain.

John Leighton, director general of the National Galleries of Scotland, helped bring the appeal to a close in front of the painting at the gallery on the Mound in Edinburgh.

"I can't tell you how thrilled we are that one of the finest works in that collection is now going to be in public ownership," he said.

"The single most astonishing, amazing, heart-warming aspect of this has been the response by private sources.

"From the public, whether it's a £5 note pressed into the collection box, through to the nation's trusts and private individuals for many times that amount."

Public donations came to £7.4 million, while trusts and funds helped make up the difference.

Mr Leighton was joined at the gallery by Dr Nicholas Penny, director of the National Gallery, London, and Scottish culture minister Linda Fabiani.

Miss Fabiani revealed today that the Scottish Government had pledged £12.5 million to the campaign total.

She said: "There is a real sense of pride that high European art of such quality is freely available to the people of Scotland.

"That's why I believe so many people have donated from income, from savings and even from pensions, all to help keep the collection here in our capital city."

Dr Penny said the National Gallery contributed £12.5 million, including £11.5 million from bequests, general donations and investment.

He said: "It testifies to the power of Titian's painting and the conviction that public access to the greatest works of art is of the utmost importance."

The £50 million appeal was launched in August last year, with a warning that losing the masterpieces would be like France losing the Mona Lisa.

The Bridgewater Collection, which includes four Titians, three by Raphael, a Rembrandt and eight Poussins, has been on view in Scotland since 1945.

The 7th Duke of Sutherland, the owner of the works, said he wanted to sell some of the collection to raise £100 million.

Diana and Actaeon, which is said to be worth £150 million on the open market, was offered to the National Gallery in London, and the National Galleries of Scotland for £50 million.

Another Titian, Diana and Callisto, will be offered in three years for a similar amount.

Diana and Actaeon is one of six large-scale mythologies inspired by the Roman poet Ovid that Titian painted for King Philip II of Spain.

Titian began the picture and its companion, Diana and Callisto, in 1556, the year of Philip's coronation.

The artist worked for three years to perfect the masterpieces, which were shipped to Spain in 1559.

However, fears have been raised that Britain’s leading galleries and museums will struggle to realise ambitious expansion plans as the recession causes companies to cut back on sponsorship deals.

The Victoria & Albert is looking for £120million for the second phase of its “future plan” to expand its galleries while Tate Modern is trying to fund its £215m extension building.

But Colin Tweedy of Arts & Business warned: “If [the recession] drags on, I can’t see they will all do it.”