Eniko Reka Kincses of Saskatoon says a deportation hearing that was to be held Tuesday was cancelled.
Kincses and her teenage daughter have lived in the Saskatchewan city since they came to Canada in 2009 to live with the woman's sister.
The girl has cerebral palsy but does not need any special medication or treatment.
The two were to be escorted to their home country on Wednesday.
Kincses had said she was told her daughter had the potential to be a drain on health and social services.
The woman's lawyer, Haidah Amirzadeh, said she received a call from the federal immigration minister's council 30 minutes before the hearing was to begin. She said she was told that the deportation had been cancelled.
“There was a lot of communication back and forth in the province and the federal department. We have received strong support from (Saskatchewan's) minister of economy and minister of health in relation to this specific application,” said Amirzadeh.
“We are hoping now that they (can) process the permanent residence application."
Kincses worked at a care home in Saskatoon until her visa expired. It was then that her file was flagged.
Kincses had suggested that because she is a single mother, federal immigration authorities were concerned they would have to pay for her daughter Boglarka's care should Kincses be injured or die.
But the small family has four sponsors in Canada — three of them are the woman's siblings. They are responsible for taking care of any financial needs that come up.
Kincses is planning to stay in Saskatoon and have her own care home, which would allow her to look after her daughter at the same time.
Amirzadeh doesn't know how long the application approval might take, but the lawyer is hoping to have an answer within a month.
"When the application is approved, she will be a permanent resident and she will be eligible to work. That's the goal."
She said her client is ecstatic.
"She was telling me this morning she was seeing herself as homeless," said Amirzadeh.
Kincses had said that if she and her daughter were sent back, they would have nowhere to go because her family still in Romania disowned her when she did not give up her disabled child.
"This never came in my mind when I came over with a handicap child. I am willing to work. I don’t want to ask for any welfare. Just give me the chance to work."