The Tomahawk School board of trustees has done an about-face and granted the Tomahawk Toddlers Playgroup permission to return to its premises in the school's library.
The decision coincides with the Ministry of Education's appointment of a limited statutory manager to manage the closure of the school, but Education Minister Anne Tolley said the two issues were not connected.
"A limited statutory manager has been appointed because the ministry believes the board and principal need assistance to manage the change process," Mrs Tolley said.
Principal Richard Aitken has been advised not to speak to the media, and all communication has been directed to the school's new limited statutory manager, Paul Spain.
Last week, the Tomahawk Toddlers Playgroup hosted a peaceful protest at the school to voice its frustration at being asked to leave its premises in the school library.
A couple of hours after the protest started, a security guard told the protesters to leave the property.
The school then offered the group the use of the school's dental clinic, but group president Anna Hughes said the venue was not large enough to accommodate the whole group in comfort.
However, the group has now been told it can return to the school library.
"It's fantastic.
"But we're still a bit confused about why we couldn't keep using it."
Ms Hughes said the group would continue to operate on Tuesdays from 10am to noon during term.
"We will now turn our attention to where we will hold playgroups once the school closes.
"It's possible the ministry may let us use the school until they find another use for it."
The school recently applied to the Ministry of Education for voluntary closure because of declining rolls.
