The council had been considering the move in a bid to dramatically cut costs across all services.
But it has announced it will now only slash £350,000 from the budget. This cut will also not take effect until 2012/13.
Among specific youth projects that have been spared the axe are Oxfordshire’s fire cadet school, the Chill Out grant for youth work projects and the county’s youth parliament.
In its latest efficiency savings plan for 2010-2015 the council hopes to cut £104.5m from its budgets and reinvest £75m into other services.
Areas set for extra money include services for children with complex needs and flood protection.
Councillor Keith Mitchell, leader of Oxfordshire County Council, said: "I am particularly pleased that we are not now having to look at savings in the youth service. The very fact that we had to even consider such a thing is an indication of the extent of the problems in the national finances and their predicted impact on local government."
The original cuts for youth services were criticised by staff, who voted late last year to strike if the plans were pursued. They said the original plan would have meant the closure of many youth centres and decimated sexual health, drug and alcohol misuse and employment support services for young people.
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