Shropshire Council has said it will open talks with community groups that might want to take the library on.
It comes after controversial plans to move it to Church Stretton School were halted following two years of campaigning by supporters and an aborted legal challenge.
Lee Chapman, Shropshire Councillor for Church Stretton and Craven Arms, said: "We are pleased we can now get back to work looking for a long-term solution for our library service and our visitor information service in Church Stretton.
"We look forward to working with the town council to achieve the best result for all our community."
He said Church Stretton Town Council expected to survey local opinion in July and August on whether it should raise council tax precepts to support services at risk of closure in the town, including the library.
The library is one of several that Shropshire Council is trying to offload to community groups as part of budget cuts.
Stuart West, Shropshire Council's Cabinet member for leisure and culture, said: "Libraries play an important role in the local community and, whilst the role of local libraries has changed over the years, they remain important for both cultural and social reasons.
"A huge amount of work has already been undertaken by all those involved to bring us to this point.
"I am pleased that libraries and other face-to-face council services in towns like Albrighton, Shifnal and Gobowen will be run and be looked after by people who have their best interests at heart."