A stay of execution has been announced for the Problem Gambling Foundation.
The Ministry of Health has reached an agreement with the provider that will see its funding continue until February next year.
It was due to lose 77% of its $5 million Government funding on July 1, when the majority of its contracts went to the Salvation Army, and had decided to take legal action over that.
The Ministry now says that because a judicial review is underway, it sees signing contracts as a "complicating factor" and the existing contracts will be extended until February 1.
The foundation hopes to have its judicial review heard in September.
The foundation has been the key provider of addiction and treatment services for gambling problems for about 20 years and has dealt with 25,000 people in that time.
Last month, it revealed it would have to close its 12 offices around the country, with most of its 63 staff losing their jobs, after the Government confirmed the funding cut.