Following widespread public concern, the Bus Éireann Galway to Ballina service has been saved with the retention of the Expressway Route 52.
Minister of State at the Department of Transport and Galway East TD Sean Canney has confirmed that a Public Service Obligation (PSO) will be put in place to maintain the service.
The PSO allows the State to support essential services that are not commercially viable.
"The service as an expressway was not viable. It was losing money, and it just couldn't continue without having some sort of support.
"So what the department have done is they're going to take that route out of service and put in a PSO route, which would be subsidised by the State. In some cases where you have expressways, they're run on their own, they don't need any subventions but when a service is losing money it cannot continue," he said.
The service between Mayo and Galway makes stops in Foxford, Straide, Ballyvary, Castlebar, Breaffy, Balla, Claremorris, Ballindine, Milltown, Tuam, Baile Chláir and Galway city.
Mayo TD and Minister for Rural and Community Development Dara Calleary said it was a vital link for communities across Mayo and Galway.
"In light of ongoing fuel price increases, the necessity of this service for hospital appointments, college goers and general connectivity of the region, it is vital that Route 52 is retained," he said.
"As is the case with any commercial route withdrawals, the withdrawal of BÉ Expressway routes has now triggered the NTA's PSO Determination process"
Bus Éireann had announced last weekend that the Expressway Route would cease next month due to "continuous significant losses being incurred on these services".
The decision to save the service has been widely welcomed across Mayo and Galway communities.
Read more: Bus Éireann to cease operating three Expressway services from 24 May