The announcement was made outside the home in Blackpool in the past half hour and brings months of uncertainty to an end.
The 25-bed unit on Redemption Road was slated for closure due to a lack of occupancy related to Covid-19, prompting fears that residents could face long waiting lists for other nursing homes.
However the Board of Mount Cara have now confirmed the 14 residents and 28 staff will be staying put.
Speaking to RedFM News, former Lord Mayor and chairman of the board Dr John Sheehan outlines the plan for the home: