A victory for the community was declared after councillors threw out plans to bulldoze a disused children's centre and replace it with flats.
As well as rejecting plans by the Children's Society to demolish 18 Wellington Road in Brighton, city councillors voiced their unanimous support to have the Victorian villa listed as soon as possible.
The detached building, known as St Gabriel's, was built in 1850 and has been used as a toddlers' playgroup, toy library and base for a children's scheme in the past.
It fell into disrepair when the Children's Society moved out two years ago.
Residents mounted a campaign to save it after the Children's Society lodged outline plans to demolish it and sell the land to developers planning to build 15 flats.
A Children's Society spokeswoman said the charity had to sell to secure its long-term future.
But planning councillors voted to keep the building.
Councillor Carol Theobald said: "It would be a terrible shame for the city to lose such a beautiful building as this. If it is not listed already then it should be."
Councillor David Watkins said: "It is so easy just to knock buildings down and replace them with flats. We need to have a look round our city and see how many more of these gems could be in jeopardy."
Yvonne Lloyd, 41, of De Montfort Road, Brighton, whose daughter Rosie visited St Gabriel's as a baby, is delighted with the decision.
She and husband Andrew protested outside Hove Town Hall yesterday as councillors arrived for the meeting.
Speaking afterwards she said: "There has been a lot of passion about this building. We are extremely pleased with the outcome and encouraged by what the councillors said."
Mr Lloyd, 40, said: "Now the building has been saved, it must not be left to rot. Another community use must be found for it."
Councillor Georgia Wrighton, who spoke on residents' behalf at the meeting, said: "This is a real victory for the community and shows people can make a difference. If those plans had been approved, it would have been a travesty, but there was a clear mandate from the councillors that it should be kept."
Dr Kathryn Ferry, of national conservation charity The Victorian Society, publicly opposed the application when it was lodged, saying the building should not be knocked down "just because it's old".
She said: "We are very pleased. The fact councillors have encouraged a listed building application is great news."
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