Scarborough North Bay Railway made the announcement as the narrow-gauge system enters its 90th anniversary year, having been founded in 1931.
The railway, which has a steam engine and four diesel hydraulic locomotives, runs between Peasholm Park and Scalby Mills, carrying mainly tourists.
The line was owned by Scarborough Corporation and later Scarborough Council until 2007, when it was taken over by its first private owner, David Humphreys.
Mr Humphreys has now sold the business to John Kerr and Peter Bryant, who have run the Cleethorpes Coast Light Railway since 2014.
Under Mr Humphreys' ownership, the short stretch of track was upgraded with new station buildings and lakeside attractions, and the new steam locomotive Georgina was introduced.
Mr Kerr said: “The railway in Scarborough is an extremely important asset to the town and wider region. Before his retirement, David has done a fantastic job of revitalising this much-loved attraction and we are looking forward to working with his dedicated team to further this. We can’t wait to take the railway to its centenary and beyond.”
The railway could open as soon as April 12 if Covid-19 restrictions are relaxed as planned.
The four diesel engines - Neptune, Triton, Poseidon and Robin Hood - have been in service since the 1930s and two of them used to operate on the now-defunct railway at Golden Acre Park in Leeds.
In 1932, during what was just the line's second operational season, one of the engine drivers, 25-year-old Herbert Carr, was killed in a head-on collision at the now-closed Beach Station. Thirty-one passengers were also injured. The railway was mothballed during the war years, but in 1948 a further head-on collision occurred and nine passengers were hurt.