Ceredigion council is not renewing its contract for the Aberystwyth service, blaming work at Bronglais Hospital.
But it will fund the route for another year if operator Mid Wales Travel opts not to run it commercially,
The cabinet was advised to keep it going as changes are being made to parking in the town.
A town's park and ride earmarked for closure will stay open for a further 12 months if the current operators choose to end its service.