The Somerville Theatre in Davis Square reopened yesterday one week after a lease dispute prompted the building's owner to padlock its doors, but the historic cinema's operator said he may have to close permanently at the end of the year.

Chatham Real Estate, which owns the building, padlocked the theater doors last Thursday after a rent check bounced, said leaseholder and operator Garen Daly.

The real estate firm's action forced Daly to renegotiate his lease, which was to have expired in 1994. An agreement was reached Tuesday night after two days of negotiations.

The new lease runs only through December 31, Daly said, adding that he expects Chatham will then redevelop the property. The landlords could not be reached for comment.

"I would like to see the theater continue," Daly said. "The theater has been a cultural center for Somerville for 75 years. It has been there as long as Davis Square has been there."

The Somerville Theatre has long been favored by community residents seeking an alternative to first-run movie houses. Most nights, the cinema shows an eclectic assortment of double features, ranging from "Last Tango in Paris" and "Betty Blue" to "Buckaroo Banzai" and "A Boy and His Dog."

The theater is also known for its live performances and its film festivals, including the annual "Festival of Animation" and the ever-popular "Attack of the Killer B's," a weekend celebration of Hollywood's lesser-known creations.

News of the cinema's impending closure has sparked protests from Somerville residents and politicians. "We're getting bombarded with calls [of support]," Daly said.

Daly said a group called Friends of the Somerville Theatre has formed to ask to have the cinema, which is one of the oldest continuously operating movie theaters in the country, declared a historic landmark. "I favor what they're doing, but I will not actively support them," he added.

The theater resumed its regular schedule of films with a screening of "The Unbearable Lightness of Being" last night.