South Africa's ruling African National Congress has backed down on plans to restructure administration in Cape Town - the only area it does not control.
Local government official Richard Dyantyi said he would not go ahead with a move to end the mayoral system.
The plan would have deprived the opposition Democratic Alliance of power in the city.
Cape Town Mayor Helen Zille said she was pleased by the outcome and called it a victory for democracy.
"It's a good deal. The system remains in place. It's good for democracy, they are doing the right thing for South Africa. It's right for the country," she said.
She had threatened legal action when Mr Dyantyi, the regional minister responsible for local government, indicated he would replace the mayor with an executive committee system.
The Democratic Alliance has accepted a small change to the structure of power, which provides two additional sub-committees in areas of the city controlled by the ANC.
In tight elections in March this year, the DA secured the support of the smallest parties on the council to gather 106 votes in favour of Ms Zille, against 103 for the ANC's candidate.
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