Green Oak School in Godalming is to remain open for the next year while further options are explored.
The school had received an 'Inadequate' Ofsted report in January 2017 and no Multi-Academy Trust had been identified to take the school on, meaning it was threatened with closure.
However during the consultation an alternative option came forward and the County Council has opted to give the school another year to explore this.
The County also acknowledged the difficulty children would face in travelling to alternative schools and that it might not be possible for siblings to attend the same school. County officers also reported that the school is improving and that the places Green Oak provides will be needed in the future.
Local Councillor Andrew Bolton said: "This is excellent news for the parents, children and teachers at Green Oak. We must ensure that over the next year all options that allow Green Oak not just to remain open but to thrive are fully explored."