Health bosses at Shrewsbury and Telford Hospital NHS Trust (SaTH) said they were expecting to bring in the overnight closure from December 5, due to staff shortages.
It was expected that the department would close between 10pm and 8am.
But Telford & Wrekin Council leader Shaun Davies today tweeted: "We did it!- the community sent the message and London finally woke up!
"Telford’s A&E will not close overnight!
"The community battle to retain our A&E and consultant led woman & children unit continues."
About 3,000 people took part in a march in Wellington on Sunday to protest against the plans, and thousands of people have signed a petition demanding a Government rescue plan to stop the closure.