The Gateway Rugby project, which targets young people in 110 schools in Newport, Monmouthshire and Torfaen, faced the chop after the Welsh Rugby Union pulled funds of 60,000 due to financial difficulties. The cash had been used to provide development officers.
Mike Sage, operations manager at the club, said: "We have managed to raise almost enough funds from private firms to keep the project going for now."
The Gateway Rugby project runs alongside another project for young people, Second Half, which provides basic skills and motivational lifestyle and sports lessons to young people.
Newport is on the verge of launching a third project in August, aimed at the 16-plus age group. It has secured funding of 70,000 from the Welsh Assembly, which was matched by the European Social Fund.
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