Jaguar have decided to stick with under-fire Brazilian Antonio Pizzonia until at least the end of the season.
Jaguar had made an approach to sign McLaren test driver Alexander Wurz to replace Pizzonia after the Spanish Grand Prix.
But Pizzonia said the team had told him on Saturday that his place was safe.
"I'm OK now until the end of this season," said Pizzonia.
"They told me yesterday and basically they said that they had made a mistake and let's carry on and make progress."
Jaguar's managing director David Pitchforth said: "It's all been a bit of a storm in a teacup really."
McLaren boss Ron Dennis revealed on Saturday that he had been approached by Jaguar about Wurz and had asked them for compensation to release him.
And the 29-year-old Austrian, who is on a three-year contract at McLaren, admitted he was interested in a move.
"We have considered the position and we have made a proposal to Jaguar that could see Alex go there. It is now up to them to accept it or not," Dennis said on Saturday.
"We have made the position clear. It is not negotiable. It is a fair reflection of what we believe he is worth."
Pizzonia had a disappointing weekend in Barcelona, qualifying 16th - four places and 0.8secs behind team-mate Mark Webber.
And his race lasted just a few seconds as he was taken out by McLaren's Kimi Raikkonen at the start, with Webber going on to pick up two points for finishing seventh.
That followed on from an unfortunate event on Friday when Pizzonia collided with one of his Jaguar mechanics.
The Brazilian came into the pits too fast during a two-hour private test and his car hit mechanic Andy Saunders, throwing him several feet into the air.
Saunders was taken to the track's medical centre suffering from cuts and bruises and slight concussion.
Jaguar's sporting director John Hogan exonerated Pizzonia of blame, however, saying the car's brakes had locked up.