A folded/unfolded paper towel dispensing apparatus, includes a housing having a cover, a drum, an associated cutting device incorporated in the drum, and a tensioning device. An eccentric lever and a spring are used to actuate and reverse the direction of the drum, in which the upper part of the housing includes two flanges capable of accommodating a reel of paper towel. The drum and the tensioning device are secured between flanges located at right angles to the rear plane of the housing. The apparatus includes a device for controlling the rotation of the drum, fitted with a shaped lever hinged at its base in opposition to an elastic return spring, the upper part of the lever being fitted with a support shaft, supporting a pair of freely rotatable pulleys. A first pulley is associated through a drive belt with the drum and tensioning device before the paper is cut, and a second pulley is arranged so as to come into contact with the rear of the reel of material.