At the latest board meeting, it was agreed that the club's academy would continue to operate at Category 3 level until at least the end of the 2019/20 season.
Commenting on the announcement, academy manager John Pemberton said: "It's fantastic news for the football club and for the academy and everybody involved with it, including all the young players we have.
"It was always the intention to keep our academy going. Not once was it mentioned that we were going to fold it, so I don't know where those rumours came from."
Pemberton praised two figures who were instrumental in securing the future of the academy. He said: "Steve Coe has played a fundamental role and also big thanks to Ashley Carson, who made it clear that he wanted to keep the academy going."