West Sussex County Council originally gave Butterflies Pre-school, which is based in a youth centre, until Christmas to find new accommodation. A second nursery, the Old School Nursery, based at a primary school, was also given its marching orders.
However, council bosses have now said Butterflies can stay at the site until new premises are found. It has promised the Old School Nursery, which was originally told to vacate by the end of the academic year, the same leeway.
A spokeswoman for the council said: "There is a lack of accommodation in the area which highlighted a problem with relocating, and that is why we have taken this step."
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