Mental health services in the central west have been given an 11th hour reprieve, with their future funding secured.

Concerns were raised when New South Wales Health said it would not renew its contract to manage the Rural Adversity Mental Health Program based in Orange.

There had also been uncertainty about the future delivery of the Centre for Rural and Remote Health at the city's Bloomfield campus.

The council lobby group, CENTROC, has urged the state government to reverse the decision.

The chairman, Bill West, said it was a relief that the changes were overturned.

"The real concern was that this work was likely to disappear and I think everybody recognises now that there is a great need for considerably more support in terms of mental health across our region," Mr West said.

"To lose any services would have been incredibly disappointing but the news appears to be good and a lot of credit to our state member, particularly Andrew Gee, who did a lot of lobbying and I know who had the minister visit Orange and show her all the issues."

Dozens of jobs have also been saved by the decision.

"At the time they were talking around 25 people may have been affected in terms of jobs," Mr West said.

"That's a massive concern but even a bigger concern was some sort of downgrading or downsizing of those support services and those advocacy services for mental health across our region."