The obstetrical unit will remain in place at the hospital in Gander.
Health Minister Tom Osborne says the decision was made yesterday.
The issue with removing the obstetrical unit and centralizing services in Grand Falls-Windsor began to heat up last week, with Gander Mayor Percy Farwell and others speaking out against the controversial Health Accord recommendation.
Speaking with VOCM News on Friday, Osborne initially indicated that it would take a long time for a decision to be made on what to do with the unit.
However, he says after conversations with area mayors and patients it was decided that obstetrics should remain in both locations.
He says they looked at the number of pregnancies in the region, and what each site could accommodate, and it was decided that they would not pursue consultations on centralization.