Producers of the ABC hit show 'Nashville' have announced whether or not the show will continue filming in its namesake city.

According to Nashville's Tennessean newspaper, the show's producers have accepted an $8 million incentive package that will allow the production to remain in Nashville for its upcoming third season. ABC announced its decision to renew the show last week.

The deal --  which is significantly lower than the $13.25 million the production received in incentives for its second season -- combines the resources of the state of Tennessee, Metro Nashville, the Nashville Convention and Visitors Corp. and Ryman Hospitality Properties. The show's producers have been in negotiations for weeks to try to secure a deal to stay in Nashville, but had seriously considered re-locating to Texas or Georgia.

"It was not an easy decision to make," Nashville Mayor Karl Dean says. "We obviously had lots of conversations, and I'm sure it's not the amount they wanted."

He adds, "It's been an overwhelmingly good thing for the city. We have a strong tourism economy and a strong convention economy, but this just adds to it in a way we would never be able to do on our own."

Under the terms of the deal, the state will contribute $5.5 million, and Metro will give a $1 million grant subject to Metro Council approval. The CVC, the city's event marketing fund and Ryman will each add $500,000.

Ryman Hospitality Properties CEO Colin Reed says the show's continuing presence in Nashville attracts tourists from all over the US. Even more important, he believes, are the international tourists the show draws to the city. 'Nashville' is broadcast in more than 50 countries worldwide, and Reed says those travelers stay longer and spend more money than visitors from bordering states, which makes his company's investment in keeping the show in Nashville viable.

"We're doing it for the ability to communicate what this city has to offer to people who historically have never been exposed to country music and the music scene of this fabulous city," he states. "That's why our company is so bullishly invested in this."

'Nashville' will also remain in its time slot on Wednesday nights at 10PM ET.