Earlier Delphi, the Swedish company in charge of liquidation, announced that it was auctioning off the museum's entire collection of vintage cars to the highest bidder.
Chairperson of Trollhättan's Municipal Board, Paul Åkerlund, told P4 Väst that he was delighted to save the museum.
"I think it means a lot, it is a part of Trollhättan's soul. It is also a big tourist attraction," Åkerlund said.
The museum includes the Ur Saab which was presented for the first time in 1947. Other cars of note include a Saab-99 from 1977, the classic model Saab 900 and 900 Cabriolet which sold well in the USA.
"I've been living with Saabs for all my life," Saab enthusiast Rune Moberg tells Radio Sweden. "For a while, I didn't even realize I was a fan. And then when we went to the museum to have a look at the history, I realized there was a lot of stuff I didn't know about Saab, and that really clinched it for me. There was no way back."