A disabled grandmother became a local hero yesterday as she finally tasted victory over Post Office chiefs after a determined High Court battle to save her doomed branch in Stroud.

In a tale of community spirit conquering Government red tape, the fight for Uplands Post Office in Stroud, Gloucestershire, lasted long after officials said nothing could be done to save it.

Overwhelming support, demonstrations and mass objections all played their part, but it was a High Court injunction, brought about by 73-year-old Mary Davies in July, which enabled negotiations to begin.

Just five minutes before the shop was due to close for ever, her lawyers won a last-minute stay of execution against the Post Office in a London court. It ultimately led to yesterday's announcement that Stroud is the second place in the country to save its post office and the first to do it on community support alone.

Ms Davies, who uses a motorised buggy to visit the shop, said: "I'm thrilled that the post office will stay open, it's going to make such a big difference. In Stroud there is nowhere to park, but Uplands is a lovely shop which all the local residents can access easily. It's got a great community feel and you are like part of the family there."

At the beginning of the year, despite a massive public outcry and a big town centre demonstration, Uplands Post Office was named as one of 26 in Gloucestershire and dozens across the West forced to shut as part of the controversial Network Change programme.

Civic leaders promised to do everything possible to safeguard the service, which had run in the town for more than a century, voicing particular concern for the high percentage of elderly and disabled residents who relied on the nearby shop.

At first, postal chiefs refused to discuss a rescue plan, but in July local grandmother Ms Davies challenged the decision arguing that the closures discriminated against disabled people.

After winning a stay of execution, the High Court battle prompted Post Office chief executive Alan Cook to intervene, and allow talks with the town council over a deal to subsidise it to take place.

The shop did close temporarily, but after four months of secret negotiations councillors confirmed the contracts and funding were in place to enable Uplands Post Office to reopen.

Until yesterday, only one office previously told it would definitely close had so been saved in the UK. Station Way Post Office in Essex reopened for business last month, but its counter was part of a larger convenience store.

Uplands is the only stand-alone post office to be saved and the only one secured thanks to the intervention of a town council.

Stroud Mayor John Marjoram said securing a future for Uplands was probably the toughest battle he had faced in more than 22 years as a local councillor.

He said: "From the start we believed this was a cause worth fighting for, but it often seemed like Mission: Impossible. There were times when I almost gave up hope. People told us we were wasting our time, as closure was a foregone conclusion. But this proves that if you believe in something you must never give in.

"The value of a post office to a community cannot be calculated on a purely profit-and-loss basis. They are an invaluable part of our social infrastructure, particularly to the most vulnerable residents.

"For a small council like ours to take over this service is not an easy option and it's not a cheap option. But we believe it is the right option if we want to maintain Stroud's great sense of community."

Postmaster Robin Craig said he had been overwhelmed by the support from customers.

He said he was overwhelmed by the strong public support to save it.

"People have not stopped asking me when we are going to reopen and how strongly they support our efforts to save it," he said.

Mr Craig, who has run Uplands for nine years, also runs one of the two other post offices left in the town. The Paganhill branch was saved by the community two years ago.

He said: "We now have a blueprint which councils across Britain can use to save their post offices. I am very proud that we've managed to do it and can't wait to get behind the counter again."

A shop refit and a new computer system is being installed as part of the new contract. Work s scheduled to finish in about two weeks, when a date for an official opening ceremony will be announced.

Stroud Town Council will provide £10,000 of funding for the service this year and up to £25,000 for the next two years.