The Bumblebee passenger ferry, which operates between Guernsey and Alderney, was due to be retired this year.
Its operator had considered buying a £1.4 million larger vessel to replace the small yellow ferry, but said that to do so they needed a capital guarantee from the States of Guernsey, which was not forthcoming.
The States of Alderney have now said that they will subsidise the current ferry, which can carry 12 passengers, this summer.
