The Canada Council for the Arts released guidelines on Monday for how it will distribute $50 million in new funding announced in the May federal budget.

Over the next two years, the council will create one new competition for funding and boost allocations for existing programs.

About two-thirds of the funds will go to what the council described in a statement as "Canada's highest-achieving arts organizations" through a new competitive process.

Symphony orchestras, theatre, dance, music and opera companies, art galleries, artist-run centres, book publishers, arts and literary magazines, and film and video producers will be eligible.

The 900 arts organizations currently receiving operating funding from the council are invited to apply.

They will be required to propose two-year plans showing how the additional funds will strengthen their operations.

The remaining third of the money will enhance existing grants programs and go to both individual artists and arts groups.

One focus of the new money will be to support activities that increase public access to the arts, including touring, circulation and festivals.

The supplementary operating grant funding for organizations will cover 2006-07 and 2007-08. Ottawa has allowed $20 million in the first year and $30 million in the second.

'Key objectives are to enhance the long-term growth potential of the Canadian arts sector and to have a significant impact on Canadians across the country.'-Robert Sirman, the director of the Canada Council

"We will be taking a strategic approach to the allocation of this new funding," Robert Sirman, the director of the Canada Council, said in a statement.

"Key objectives are to enhance the long-term growth potential of the Canadian arts sector and to have a significant impact on Canadians across the country."

The council plans to release detailed guidelines on its website Nov. 6.