Patients who feared the Ferryhill and Chilton Medical Practice, in Durham Road, Chilton, was to move have been told the surgery is staying put for now.
Doctors say they had been considering moving the surgery to a new site in Windlestone, but that has now been discounted.
Dr Andrew Oakenfull said a move had been considered because the current building was not ideal.
"The building's fine as it is at the moment, but in ten years time it'll probably need a lot of work doing to it.
"I would like to think that at some stage we could provide services from better premises in Chilton, but we have no intention of moving out of Chilton and the actual location of the current site is ideal."
Margaret Taylor, of the Chilton West Residents' Association, said: "It would be ideal if they could have a bigger building and a more secure building, but you've got to think of the people and we were deeply worried about it.
"We have an elderly population up this side of the village. They have a bus in Windlestone, but in Chilton they can't do it because the streets are too narrow and it would have meant a 20-minute walk."
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