Woronora RSL Club has been given a two months' lease extension, which officials say will help enormously as its fight to keep the doors open.
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RSL Custodian originally issued a notice for the club to vacate the premises by August 31.
The lease termination date has been moved back to October 31.
Club president Darren Parker said, "It's really good news".
"It gives us some breathing space while Crown Lands and RSL Custodian nut out a new licence for us," he said.
Mr Parker said Crown Lands may decided to issue two licences - one for the club and another for the adjoining war memorial.
"I don't mind - I just want to keep the doors open," he said.
Mr Parker said the support from the community and local MPs had been "unbelievable".
"I think the publicity in the Leader was what really rattled their cage," he said.
"From the beginning, I could never understand why [RSL Custodian] went down this path.
"It has resulted in both sides spending a lot of money on lawyers, who are the only winners."
A post on the club's Facebook page appealed to the local community to keep supporting the club.
"We are not out of the woods yet," the post said.
"The club is committed to continue to provide our members, guests and community, a wonderful place to be entertained, refreshed, catch-up with friends.We will keep notifying you of events and functions.
"The support of club events over the weeks since this battle started has been stunning.
"The only way we will survive is if all of us continue to support the club through patronage.The usual club services, live music, restaurant, the River Room for functions ...it's business as usual, so come on down.
"We will continue to keep you up-to-date with developments as they emerge.