After years of financial difficulties the day nursery at Leigh Park Baptist Church had planned its closure.
The nursery had been running for 14 years and catered for children of single-parent families and those of working parents.
The nursery had previously received grants, but Havant Borough Council offered a deficit grant.
Betty Bell, the chairman of the Havant housing committee, said the centre answered a local need.
She added that it was used by working parents and provided good facilities, and was also used by the social services in order to help disadvantaged children.
Edna Dabbs, the nursery organiser said: ‘There is a tremendous need for the provision of nursery facilities by local authorities.’