The Diocese of Dunkeld is to take over the operation of the closure-threatened Wellburn Home in Dundee.
The Liff Road care home has been run for the past 152 years by the Little Sisters of the Poor.
However, the order announced last year they were unable to continue their work in a Dundee because of a shortage of new nuns willing to join.
This led to fears the home may have to close but the Diocese of Dunkeld has now agreed to take over responsibility for running the home.
A statement released through the Diocese’s website said: “The present political climate with the current debates taking place both in the UK and the Scottish Parliaments, do not, the Catholic Church believes, serve the best interests and dignity of the infirm elderly.
“Wellburn will continue to both serve the infirm, protect their rights and best interests and dignity, by continuing the loving service and care to those in need.
Sr Joseph Christine, Mother Provincial of the Little Sisters, said: “We are very happy with negotiations and wish Bishop and the Diocese of Dunkeld God’s blessing in continuing the work of our Foundress, St Jeanne Jugan.”
Bishop Stephen Robson, speaking on behalf of the Diocese of Dunkeld, added that he had known the Little Sisters since he was a child and has great respect for their work.
“If we can achieve their level of service and love with God’s help we will be happily blessed indeed,” he said.”
There are only about eight nuns remaining in Dundee, all but two of whom are over 70.
The Little Sisters of the Poor are a worldwide organisation who help the elderly in homes across the globe.
They have seen worldwide membership drop from 4,000 to 2,000 in the past decade.