Proposals to relocate the Central Lending Library in Bristol in two year's time have been shelved.
Council bosses suggested the move after fears spiralling costs for the listed building in Deanery Road would affect the rest of the city's libraries.
Councillors have now asked for the proposal to be removed from the draft three-year financial plan.
Cost-saving plans to shut Blaise Castle Museum in three years time have also been removed from the document.
Councillors argued relocating the library would release an initial £150,000 and eventually up to £300,000-a-year for reinvestment in new neighbourhood cultural centres, including library services, across the city.
But, after the plan became public, concerns were raised by councillors, regular library users, staff and partner agencies
The council's executive also told officers to withdraw a proposal to shut Blaise Castle Museum in three years time, which had been suggested as a way of freeing-up £130,000-a-year to support other museum and leisure services.
A council spokeswoman said: "Clearly, we have to consider the best way to free-up resources to invest in and improve our libraries and develop our museums.
"If the library service is to meet public expectations and government standards, then more investment will be needed - and this has been identified as a priority for the council.
"However, further work has to be done to establish the needs of the city's communities and this requires a full and proper public discussion before any plan is adopted," she said.