Walsall Town Council has announced it will not go through with the planned closure and relocation of the Leather Museum.
The decision was made at a budget review on last month.
It comes after a backlash from the public, involving a petition, gaining more than 6,000 signatures and a protest.
Council leader Cllr Garry Perry said: “I don’t make any apologies that this cabinet considered the relocation of Walsall Leather Museum because the finances and other statistics speak for themselves – if we don’t do something now it will close by default.
“There have been a number of voices with connections to the leather industry, whether in Walsall or nationally, about what the historic leather industry means to them. It would be folly of us not to listen to them, and we are going to do just that.”
The building is regarded as the town’s last museum, having stood since 1891 as a factory before being renovated in 1988.
Neoliberalism, a local street artist who attended the protest, said: “I’m glad that we’ve managed to make such an impact and that it’s galvanised so many people from across the region.
“I’m grateful that the Council saw sense, hopefully they engage with their community more.”
Another protester, Demi Hood, said: “I’m happy that it still remains open. It means that the tradition of leather making is still within the community and apart of our history.”
The halt is not permanent, however. The site will remain open for the next 12 months as the council consult with the public.
Campaigner Todd Green said: “They’ll try and do it again.
“I think the important thing is we need to keep the message going. I do believe the museum needs updating so we can get more funding and that the archives can continue to be shown.”