The State Government will not be going ahead with the sale of a 2.7 hectare site on Garside Road in Mollymook.
The land was set to go under the hammer on March 10 in Wollongong, but following strong opposition from the local community and lobbying by South Coast MP Shelley Hancock, there's been a change in those plans.
Ms. Hancock says after meeting with Premier Gladys Berejilklian and Education Minister Sarah Mitchel, the Government has decided to listen to community concerns.
She says it was unacceptable that the sale was proceeding without any consultation with the community, nor surrounding school principals and education staff.
The fences around the site will now be removed.