The pre-school planned to close due to a lack of funding but will now continue to operate from September offering places to more than 30 children aged between three and five.
The support it will now receive will also see the pre-school leave its home of eight years. The Department of Education has said that the move has been carried out because there was space at La Hougette, and that they will be able to do this at no charge.
The happy announcement was made after politicians agreed plans to introduce free universal pre-school education for Guernsey and Alderney.
Should the Department of Education be helping more settings in financial crisis such as this one?