Ballougry Primary School, which has 44 pupils, had been due to shut by August after the Education Authority said it was “unsustainable”.
But the plans were strongly opposed and gained the support of Silent Witness actress Amanda Burton who had attended the school as a child.
The Education Authority said on Friday that the immediate closure would not take effect and the school would operate for another academic year.
Ballougry is situated about a mile from the border with the Republic.
Some children travel about three miles from Derry to attend the school and it also has six pupils from Donegal.
The Education Authority previously said that with 44 pupils and three teachers Ballougry had far fewer than the Department of Education’s recommended number of 105 pupils for a rural primary school.
It said Ballougry pupils could attend primary schools in Derry, where they would have access to more educational and extra-curricular activities.
The authority also said that closing the school would save money.
The Education Authority said a public consultation about the future of the school had attracted “a significant number of responses”.
It said that information along with other evidence had to be “carefully assessed before a final decision on the future of the school” could be made.
Amanda Burton was among those who called for the decision to be reversed.
The Silent Witness star, whose father was a former headmaster, described the school as “magical” and said it provided great value to the rural community.