The Progressive Democrats have confirmed they are shelving plans to launch a leadership contest after persuading Mary Harney to remain in the post.
The Minister for Health had taken on the roll on a temporary basis, but a string of resignations from the party has forced it to launch an internal review to plan a new way forward.
Former TD Tom Parlon was tipped as the man to revitalise the party, but his surprise resignation rocked the PDs in the wake of the departures of Michael McDowell and Liz O'Donnell.
Ms Harney had only intended to act as caretaker leader until a permanent appointment could be made in the Autumn, but she has now agreed to stay on.
It has been confirmed the PD parliamentary party met yesterday - its second meeting since the General Election and its first meeting since the formation of the new Government.
Party members unanimously agreed to elect the second of its two TDs, Noel Grealish, as chairman of the parliamentary party. The party said: "The meeting also moved to formalise the position of Mary Harney as the leader of the party.
"After the General Election, at the request of the chairman of the party, Mary Harney agreed to take on the responsibilities and functions of the party leader.
"The parliamentary party unanimously confirmed Mary Harney's position as the leader of the party."
The PDs said a six person commission established to consider the future rules of the party relating to the election of a leader will report to its National Executive in September.