Liverpool City Council has struck a deal with Shaw Healthcare to keep Brushwood and Millvina Care Homes open until spring next year.
The company announced in the summer that it could no longer keep operating the two homes due to the impact of the COVID-19 pandemic.
In an update to a meeting of councillors this evening, Mayor Joe Anderson revealed the council had reached an agreement with the firm while talks continue to see if another provider can be found.
Shaw Healthcare as the service provider has agreed to remain in place delivering care until spring next year, or until a new provider takes over – whichever is sooner.
The council is continuing discussions with a range of interested parties.