Six libraries had faced the axe as part of Telford & Wrekin Council's cost-cutting budget proposals.
But cabinet chiefs last night met at Addenbrooke House, in Telford, and unanimously voted in favour of plans that will see the services continue.
Three of the six under-threat libraries – Donnington, Dawley and Stirchley – will be run by town or parish councils.
A fourth library in Hadley will be run by Hadley Learning Community, supported by Hadley & Leegomery Parish Council.
Telford & Wrekin Council will also continue to run and operate Newport and Madeley Library with some changes to opening hours.
It will also support the new community led libraries by allowing access to use of the council's ICT library loan system, help to decide on refreshing book stock, provision of new books and support for training volunteers.
Councillor Liz Clare, the council's cabinet member for culture, sports, parks and green spaces, said it had been a "difficult journey" but that she was grateful to town and parish councils for looking at the issues head-on.
She added: "We will need to make sure all our volunteers have been trained and we need to make sure we keep the support for them."
She said it was "sad" that the mobile library service was due to end from March 31 but council leader Shaun Davies added: "If there is a solution for the mobile library to be kept we will work with others to do that."
Councillor Lee Carter, cabinet member for finance, also welcomed the proposals.
He said: "This administration is true to its word. We will do whatever we can to keep services alive."
Southwater and Wellington will also continue to be run by the council.
In Oakengates, the library will also be run by the council as it is part of Oakengates Theatre.