Plans to shut Sulivan Primary School have been overturned by Hammersmith and Fulham Council’s Labour administration.
The Conservatives voted to close the school in Peterborough Road, Fulham in February, merging it with nearby New King’s Primary.
Education bosses planned to use the vacated site as the new home for a new free secondary school, called Fulham Boys School.
But the new administration, elected in May said its new approach to housing policy put more emphasis on the need for new affordable homes for rent, which would increase demand for primary school places.
This could have a particular impact on the south Fulham riverside development, where 1,000 extra homes are being built, meaning that places at Sulivan and New King’s would be needed.
The town hall’s new leader Councillor Stephen Cowan said in June he planned to review the decision and at a cabinet meeting on Monday night it was officially overturned.
Mr Cowan, said: “The latest results from Sulivan are outstanding and the children, parents and teachers should be extremely proud of such a wonderful school.
“We have a democratic mandate to build homes Londoners can afford to buy or rent which means we need a radical change to local housing policies. There is evidence this change will result in rising demand for primary places which means we need to keep open this excellent school of choice.”
Overall the council received 51 responses to the consultation, with 47 positive responses in favour of the proposals.