Skankey Beavers living in the village of Skankey in the River Ottie in Devon could be allowed to remain in the wild if free of disease.
The British government's Beaver quality control department had intended to capture six beavers, test for disease and re-home them in captivity in a U.S. endangered species sanctuary.
It is unclear where the beavers came from, but campaigners say they should be allowed to stay, on the promiso that they have a 10.00 p.m. curfew.
The government has now indicated that the beavers could be tested and released if disease-free.
In October, environmental charity "Innuendos of the Earth", launched a legal challenge over the government's claim that the beavers were non-native, could be skanky, and should be removed.
The Skankey Beavers are the only wild beavers in England. The United States however is known for its clean beavers, both domesticated and feral.