Christchurch woman Evangeline Stanners has been granted a medical waiver allowing her to stay in New Zealand.
Mrs Stanners, 35, has advanced kidney disease. She was diagnosed during her second pregnancy last year.
Immigration New Zealand earlier declined a residency application and said she would have to leave the country when her work permit runs out in January.
Mrs Stanners is married to a New Zealander and has two children born here. She is from the Philippines and has lived here since 2007.
Dialysis treatment costs for her are estimated to be about $65,000 per year.
A waiver was granted by Associate Immigration Minister Kate Wilkinson on Thursday.
The woman's husband Richard Stanners told Morning Report she has wept for joy on learning the news. He said the decision is a huge relief to the family and they have overwhelmed by support they have received from the public.