The number 62 Chaserider bus operates every 60 minutes in the day time Monday to Friday between Cannock, Bus Station and Lichfield Bus Station calling at Blackfords, Chadsmoor, Hednesford, Wimblebury, Rawnsley, Hazelslade, Prospect Village, Chase Terrace, Burntwood and Pipe Hill.
It was scheduled to stop running next month after after being de-registered by the Traffic Commissioner.
The move led to complaints from users, particularly in Hednesford, who faced the prospect of catching two buses, one to Cannock and then another onto Lichfield.
But after a passenger campaign the service will be remaining on the road for the foreseeable future if communities use it.
The move has been welcomed by Cannock Chase MP Amanda Milling.
The operators maintain the service is being run at a loss, however, and the MP has urged passengers to use it.
Cannock Chase MP Amanda Milling said: "I am pleased that the Number 62 bus route (Cannock to Lichfield) will not be withdrawn in June as originally thought.
"Whilst this news is undoubtedly positive, Chase Rider maintains that the route continues to make a loss. I would strongly encourage all residents to make as much use of the service as possible to demonstrate the importance this route holds to the local community."
The company halted the Saturday 62 service earlier this year due to low passenger numbers with bosses stating that patronage had declined to a level where it could no longer be sustained on a commercial basis.
Chaserider Buses head of business development Keith Myatt said: "I am pleased to confirm that our service 62 will no longer be cancelled and will remain on the current route and timetable."
The company said it offers a wide range of tickets which can be purchased from the driver with cash or contactless or the Mytrip app. For more details phone 01543 758594 or visit the website chaserider.co.uk