Lincolnshire County Council has pledged to keep running Stamford Day Centre after it was unable to find a private provider to take it over.
The authority said it had been unable to reach an agreement with the Lincolnshire Partnership Foundation Trust over the centre in Ryhall Road and 16 others around the county.
But executive member for adult care Patricia Bradwell (Con) said the council would now focus on modernising and improving the day centres itself.
Stamford Day Centre was saved from closure in February 2012 after a Mercury campaign. The council had planned to close it and others around the county. But after hundreds backed our campaign the council decided to keep well-used centres open and seek private investment.
Coun Bradwell said: “I would like to reassure people that day services remain unchanged and people who need to use this service can continue to do so. Throughout the process anyone in need of day services has had the opportunity to attend them.
“We will now continue to modernise the service ourselves, working with carers, service users and staff to get their input into how it could be improved for the future.”
County councillor for Deeping St James Phil Dilks (Lab) backed the Mercury campaign. His mother-in-law attended Stamford Day Centre before her death.
He said: “I know from personal experience that Stamford Day Centre provides much needed respite to give carers a regular break and allow elderly and vulnerable loved ones to stay at home with family for longer.”
Stamford Day Centre currently has 23 attendees and five staff. It provides traditional day services for older people, those with dementia and with physical and sensory impairment.