The National Gallery and National Galleries of Scotland dipped deep into their reserves as part of a successful bid to keep a prized artwork by Titian.

Faced with a task of raising around £50m for the ‘Diana and Callisto’ by December last year, just a few years after it raised the same amount for the acquisition of another Titian – Diana and Actaeon – from the same owner, the galleries’ trustees took what is described as an “unprecedented” decision to use £25m of its reserves towards the purchase and boost their fundraising efforts. The majority of these reserves were the result of bequests made to the galleries.

In their fundraising effort, the galleries concentrated first on individuals and grantmaking foundations, to some considerable success. The galleries received grants of £3m from the Heritage Lottery Fund and £2m from the Art Fund with a further £15m coming from a variety of gifts from trusts, foundations and individuals. In contrast, in 2009 when raising funds for ‘Diana and Actaeon’, only £7.4m had come from donations from individuals and trusts and foundations outside these larger funders.

Following a reduction in the asking price by £5m to £45m by the owner, the Duke of Sutherland, the galleries announced it had come up with the funds necessary to keep the masterpiece in British hands for the next 200 years.

Dr Nicholas Penny, director of the National Gallery, London said: “We have been able to secure both [artworks] for the public, in a period of economic hardship, because of the esteem and affection that both institutions have enjoyed for many decades. It is a triumph for u s, but also for our predecessors, made possible by today’s supporters but also by benefactors long departed.”

Secretary of state for culture Jeremy Hunt, who has pushed for an increase in philanthropy to the arts in light of reduced government spending in the area, praised the efforts of the galleries.

“This is great news,” he said. “It shows what can be achieved when determination, goodwill and a tremendous amount of generosity come together.”

The artworks will be shared between the two galleries and form part of the famous Bridgewater Collection, a collection of masterpieces on loan to the galleries by the Duke of Sutherland’s family.