Birmingham Citizens Advice Bureau appears to have been given a reprieve after Birmingham City Council indicated it had changed its mind on interim funding.
The CAB, which is the largest in the country, had planned to close at the end of this month with the loss of 45 jobs.
The city council announced in December that its £600,000 annual core funding grant for the CAB would come to an end in March this year and that there would be no interim funding until new advice service contracts were issued in August.
Buta spokeswoman for the city council said the CAB had now been "informally notified" that it would receive interim funding until August. But she was unable to confirm how much the CAB would receive and no formal announcement has been made.
A formal decision is expected to be announced within the next two weeks.
A spokeswoman for the CAB said it was not yet clear how much the funding would be, but it was expected to be enough for the CAB to remain open until the new commissioning round began in August.
Earlier this month, a judge ruled the decision to stop funding for the CAB and 12 other advice charities in the city was unlawful.
However, the city council was ordered to provide interim funding only for the three charities whose service users were directly involved in the review: the Birmingham Tribunal Unit, the Chinese Community Centre Birmingham and St James Community Support & Advice Centre, Birmingham.
The council was unable to confirm whether any of the other nine charities whose grants had been cut will now receive interim funding.