The proposal was put forward by local businesswoman Michelle Wilden after she became concerned that festive cheer could be in short supply in Lytham following the Council's decision to provide just £1,500 to the Chamber of Trade for the cost of the lights this year.
But Blackpool-based Trans-Continental Group, run by Lytham husband and wife team Rosie and Mike Withers, have subsequently stepped in and offered to give the Chamber about £3,000 worth of lights.
And now Michelle, who part-own's ice rink rental company Wonder Ice, is offering to provide the facility free of charge to ensure that Christmas is very much back on in the town.
She said: "We saw the story in the Express and thought this was something we had to act on. We've got the full support of the traders and they're telling me that this could be the saviour of christmas. Time is really against us now so its just a case of fingers crossed."
John Strong, Chairman of Lytham Chamber of Trade, said: "It will be good thing and will bring people into the town. It's something that nowhere else in the Fylde Coast has got."
The 300 sq metre rink, which will be made of synthetic ice, is to take pride of place at the heart of the town centre on Lytham piazza.
Michelle is now set for a crunch meeting at Fylde Council with Director of Strategic Development Paul Walker, when a decision will be made on whether the rink will be given the green light.