Services will continue until at least July
The sub post office in Port St Mary will remain open until at least July.
The Isle of Man Post Office made the announcement after sub postmaster Mr Jeff Calvert agreed to extend the existing contract.
He had planned to retire at the end of this month.
Many local people have voiced concerns that future counter services in the village were in doubt, following the launch of a consultation by the Post Office Board.
Tynwald approved a motion in December to sustain all sub post offices currently open, until the chief minister publishes his report into communities this summer.
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