Parents and staff at the UHI Perth College nursery have won their fight to keep it open.
The news came just hours after dozens of parents staged a protest over proposals that included closing down the facility.
The college, run by the University of the Highlands and Islands, is making cuts to plug a £3 million black hole in its finances with plans to slash 50 jobs.
The nursery, which is used by students, lecturers and the public, was included in the proposed cost-saving measures.
However, college bosses confirmed that the nursery will no longer be part of the consultation.
Dr Margaret Cook, UHI Perth’s principal and chief executive, said: “The collective consultation process within UHI Perth is progressing.
“We have met with our recognised trade unions and employee representatives on two occasions and met with a number of staff teams, individuals and external stakeholders as well as receiving feedback, questions and comments from both within and outside the college.”
Dr Cook confirmed that the college will be removing the nursery from the current consultation process, which will be extended to September.
Children will continue to be accepted for the 2023-24 academic year
She added: “The nursery manager will work with the vice principal to look at what options can be considered to make the nursery a viable option for the future.
“Children will continue to be accepted for the 2023-24 academic year.
“Staff have been informed and a letter will go out to parents and carers today.
“We will continue with securing approval for the enhanced voluntary severance scheme.
“The college remains in a position where we have a potential £3 million deficit going into the 2023/24 academic year, and we continue to have rising staff costs along with spiralling inflation and utility costs.
“The changes being considered are to ensure the long-term sustainability of UHI Perth.”