HMV will remain at its current Belfast home after agreeing a new lease with the landlord of Donegall Arcade, Sports Direct.
The shutters had been due to come down on the city centre store later this month, but agreement was struck yesterday, saving a total of 16 jobs.
In a statement HMV managing director, Neil Taylor hailed the development as "fantastic news".
"I am extremely pleased to say that we have agreed terms with our supportive landlord that will allow us to continue to trade in the wonderful city of Belfast. It is the best outcome for our staff and also for our very loyal and supportive customers and we look forward to seeing them very soon as we continue to develop and improve our offers every week," he said.
Less than two weeks ago store closure signs were put up at HMV's sole outlet on the island of Ireland after issues emerged with the landlord, Sports Direct in relation to the lease.
Speaking in the wake of the closure notice being issued, Mr Taylor said HMV was "extremely keen" to reach an agreement with the landlord, but the terms being discussed "don’t provide for a long term viable store in Belfast".
“We remain extremely keen to come to an agreement that avoids the need to close such an important store for us and we are very open to find a deal that works for both ourselves and the landlord," he said.
The HMV boss added that the music retailer would look for alternative premises in the city in the event of the store closure, which is believed to have been scheduled for April 28.
HMV collapsed into administration for the second time in six years in December and in February was bought by Canadian firm, Sunrise Records.
As part of the deal it was announced that 27 UK stores, including the retailer’s flagship Oxford Street site would close, but Belfast was not among those listed.
Donegall Arcade was acquired by Sports Direct in a multi-million pound deal back in 2015.
The shopping arcade comprises 75,000 sq ft of retail space and is home to HMV, TK Maxx, Game, as well as a Sports Direct outlet.
