Parents are breathing a sigh of relief after being told that Wootton Bassett Infants School and Noremarsh Junior School will no longer merge.
The plans were announced in January by Wiltshire County Council.
The proposal caused a wave of panic among parents at the infants school, who were keen to keep things as they were.
At the moment children can go to Wootton Bassett Infants School, in the High Street, from reception year until year 2 and then move on to Noremarsh Junior School until year 6.
If the merger took place it would have meant creating one new primary school for children from ages four to 11.
The proposal outlined plans for a new building for 420 children on the existing junior school site in Clarendon Drive by 2010 at the earliest.
The move would also have meant having one head teacher instead of the existing two.
A spokesman for the county council said: "Following the consultation to amalgamate Wootton Bassett Infants School and Noremarsh Junior School, Wiltshire County Council has decided it is not in the best interest of the children at present.
"After listening to local people and considering their responses, the decision is to leave the two schools to operate separately on their current sites, as at present."
Parents were given until February 22 to give the county council their feedback and a group of mums opposed to the plan quickly rallied support.
Dawn Robbins, who has a daughter starting at the infants school in September and went there herself, said: "We are all obviously delighted. We were told in a letter that there was an overwhelming feeling for the merger at Noremarsh and a huge opposition at the infants and because of the divide they decided not to go ahead. We are thrilled, it is the best news possible."
Caroline Walker, whose two children go to the infants school, headed the campaign against the merger and even wrote to North Wiltshire MP James Gray. She said: "We are really really pleased and it is a relief that it is going to continue as it is.
"I don't know how these decisions are made but we hope that somewhere along the line the county council did listen to us.
"I don't think they had any concrete plans in place so when there was so much opposition it was easy for them to back out.
"The mums of the pre- school children are especially pleased that the school will stay here for their younger ones."
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