New conditions include the final jump being removed, which means the fence 200 metres from the finishing line will be removed mid-race in the 3300-metre event.

Debate over the controversial sport boiled over a fortnight ago when three horses had to be destroyed at the Grand Annual Carnival at Warrnambool.

Following the deaths, Racing Victoria suspended the sport.

Racing Minister Rob Hulls said the Government supported the board's decision, but the industry was on notice to improve safety for jockeys and horses.

"The rate of deaths so far this season and last year is unsustainable and the industry remains on notice that improvements must be made to ensure the whole industry is not tainted," he said.

"Now the decision has been made, I would urge calm and encourage all those with an interest in jumps racing to conduct any future debate in a responsible and respectful way."

Mornington Racing Club chief executive Fraser Bayne said the club was pleased a commitment to the industry at the start of the year to allow it to continue in 2009 had been upheld.

"Owners and trainers have prepared their horses and they now have a chance to recoup some of their investments."

Bayne said the peninsula was home to some of Australia's most prominent jumps trainers and jockeys and the decision to continue the sport was widely supported in the area.

Leading peninsula jumps trainer Fran Houlahan welcomed the move, saying it meant she did not have to sack two staff members. She welcomed the impending review. "That's what you have to do, keep assessing things and keep improving."

RSPCA Victoria president Hugh Wirth described the ruling as "ridiculous".

"Racing Victoria has once again bowed to industry and economic pressure to the detriment of horse welfare," Dr Wirth said.

"Despite the changes to jumps racing events introduced in recent years, the number of horrific fatalities has not reduced. You cannot continue to justify the use of an animal where the accident and injury rate is so high."