The council of Garnethill Synagogue in Glasgow decided at a meeting on Wednesday night to withdraw the notice of termination issued to their minister, Aharon Soudry.
Support had been gathering for Mr Soudry, who was told in August that Garnethill would no longer be using his services due to "unacceptable behaviour".
Treasurer Bernard Goodman said: "He was given three months notice and that has allowed for a cooling off and reconsideration. We took into account the fact that the gentleman has been with us for 20 years and there's considerable support for him within the congregation."
A new post will be created for Mr Soudry. Mr Goodman said that the details have yet to be worked out.
Sources close to Mr Soudry confirmed that he would be prepared to return to the congregation as minister.