Anne MacFarlane has won her six-month battle
North Yorkshire and York Primary Care Trust (PCT) have back-tracked over a refusal to fund a life-prolonging drug.
Cancer patient Anne MacFarlane, 65, from Bedale was told by specialists she needed the £16,000 drug Lenalidomide, but the PCT refused to pay last year.
Ms MacFarlane, who was diagnosed with a cancer of the blood cells, had been due to go to the High Court following an unsuccessful appeal in February.
Ms MacFarlane's solicitor said the latest decision was "fantastic news."
She said: "We have received confirmation from the PCT that they feel Anne's is an exceptional case.
"She is joyful today. She is so upbeat and extremely positive. It could potentially extend her life by up to three years."
Ms MacFarlane was diagnosed with multiple myeloma in June 2004 and was advised in November last year by three haematologists that she needed Lenalidomide.