The decision, taken by Powys County Council's board, was that no sale would be considered until the future of Newtown's Smithfield livestock market (subject of an application by supermarket giant Tesco) is confirmed.

A spokesman for Powys County Council said: "The decision was deferred pending the outcome of a planning application submitted by Tesco for a supermarket on the site of the old Smithfield livestock market. The decision would then be reconsidered."

The move secures the short term future of some 70 traders who operate out of the hall.

Tracy Jones, who runs TJ's Soft Furnishings, which is based at the Market Hall, and is secretary of the Montgomeryshire Branch of the Market Traders Federation, welcomed the news.

She said: "All of the traders are very relieved and it gives us a bit of breathing space to get our act to together to try and form a co-operative.

"On behalf of all the traders I would like to say thank you to everyone who has supported us in this campaign."

Newtown's elected county councillors had campaigned hard to prevent the sale of the Market, with Russell George, Peter Harris, Bob Mills, Richard White, and Frank Torrens all lobbying to keep the building in its current guise.

Newtown County Councillor Russell George said after the decision was confirmed: "The Traders and the people of Newtown will be pleased with the news that any decision to sell the market has now been deferred.

"This was undoubtedly helped by a well supported petition and also the backing of the Newtown County Councillors. The proposed sale of the building has been a real worry to the businesses within the market and many believe that Newtown, as a market town, should retain its indoor market."

Conservative parliamentary candidate Glyn Davies also welcomed the decision, he said: "I do not fully understand the reasons for the decision but I agree with it nonetheless. It would not have been acceptable to turf out the traders, at least this decision gives them time."