City councillors say Derby's cenotaph will not be moving from Market Place. War veterans feared proposals were being discussed to move the memorial nearer to the cathedral as part of a major redevelopment.
But Derby City Council now says there are no plans to relocate the memorial in the foreseeable future.
The controversy centres on the possible relocation of the Sir Peter Hilton Memorial Garden and the Korean War Memorial to allow redevelopment.
The move would make way for the new �9m Quad arts centre and cinema.
Harry Mycroft, chairman of the Derby Burma Star Association, said: "I'm very pleased but at the same time I'm a little bit apprehensive.
"I would like it in stone and in blood that it will never be touched.
"I would like it stated categorically by the council that they will not touch the cenotaph."
Veterans have organised a demonstration at the garden on Sunday.