Manx Care says it won't move a rehabilitation ward from Ramsey Cottage Hospital to a day centre more than half a mile away.
In a statement, the organisation says relocating Martin Ward to Reayrt Skyal on Gardners Lane was an option that had been considered.
It made the announcement after what it called the "accidental disclosure of confidential planning discussions".
Manx Care's board is due to consider options when it meets in July, but the Reayrt Skyal move has now been ruled out.
Peel Secret Santa scheme brings hope to Island families this Christmas
A Secret Santa scheme for struggling families has received an overwhelming response from people wanting to make Christmas brighter for those who need it most.
Own Homes approaches 1,000 pre-registrations on the Isle of Man
A new rent-to-buy scheme has attracted almost 1,000 pre-registrations ahead of its launch in early November.
Timpson applies for key-cutting kiosk at Tesco
You could soon get your key cut after your food shop, if planners give the green light to new proposals.
Post Office suspends deliveries of goods to the EU
The Post Office has halted deliveries of goods to the European Union.
Rob Callister confident in election result despite legal challenge
A winning candidate in last month's general election says he's confident in the result, after a former MHK who lost her seat launched a legal challenge.
Illegal immigrant turned back at Manx border can't stay in UK
An illegal immigrant who applied for asylum in the UK but later came to the Isle of Man has been told he can't stay in either country.
Bank scammers warning as calls target Island residents
The government's online security experts are warning you not to fall for scammers impersonating a bank.
Island to extend UK VAT cut on power, says Treasury Minister
Treasury Minister Michael Crowe says the Isle of Man will follow some of the UK's announcements in today's budget.
