The family of a 75-year-old woman with Alzheimer's disease has won the right to keep her care arrangements in place.
Cornwall Council social services had initially paid Hilary Cooper's daughter Lynn Keen to care for her at home at Whitstone, near Holsworthy.
But her condition deteriorated and social services said the cost had to be transferred to the NHS, which said it could not make direct payments.
She had faced being sent to a home, but the council has now agreed to pay up.
The council said it had "reconsidered" its view on the case.
Mrs Cooper is in the advanced stages of Alzheimer's and needs help with all personal care.
Social services payments were stopped three months ago and the NHS said that Mrs Cooper must move into a home or get agency carers.
'Best in the world'
The family refused, saying Mrs Cooper was getting the best care at home with her daughter.
After threatening a judicial review in the High Court in London, her family has been told that Cornwall Council will restart payments next week.
Mrs Cooper's husband Ray said: "It's a great feeling because it takes a lot of pressure of knowing I can get Lynn back here full time.
"She is the best carer in the world."
The council said in a statement: "We have reconsidered the current circumstances of this case and, together with NHS Devon, have come to an arrangement that allows us to reinstate the direct payments on a temporary basis.
"We will continue to work with the family and NHS Devon to agree a permanent solution."
Devon Primary Care Trust said the trust sympathised with the family but the law prevented making direct payments to them.