The community and Northern Tablelands MP Adam Marshall demanded the Uralla centre remain open after patients were told future appointments would need to be made in Armidale as of July 1.

On Wednesday night the state MP received formal advice that HNEH had backed down on its plan, which would have seen vital health services and jobs ripped from the town.

"Community Health Services are not being withdrawn from Uralla, and no jobs are at risk," a Hunter New England Health spokeswoman said.

"We are still providing services from the town and our intention is to continue to do so.

"The current building is not suitable to deliver health care services into the future, and we are required to find new premises in Uralla, we have already explored a range of options."

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Health services will continue to be delivered from the existing building while a new location is sought with the help of Mr Marshall, who called the reversal of the decision a "win for the community."

"This is a wonderful win for people power and common sense," Mr Marshall said.

"The Uralla Community Health Service provides important pre and postnatal support to mothers and services like wound care for the elderly - there was no way the community was going to let this vital service be taken away without a fight.

"I am relieved and delighted that HNEH has backed down and given a commitment that the clinic will remain operating from the Wood Street address past 1 July, until an alternative building for the clinic can be found in Uralla.

"I understand the asbestos in the current building poses a health risk and I'm looking forward to working with HNEH and Uralla Shire Council to find a new building for the clinic as soon as possible."

There is no risk to staff with the asbestos as it is contained.

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