Local independent bus operator Stephensons says it will save the service 12 between Newmarket and Cambridge.
The company already runs services between Haverhill and Bury, and from Bury to Mildenhall and Newmarket.
Managing Director Bill Hiron said: “This follows the announcement by Stagecoach that it will be withdrawing the route after 30th October.
“Following a review of usage, and discussions with the relevant local authorities, I am delighted to confirm that we will continue to operate the ‘fast’ Newmarket – Cambridge service, broadly at the current route and frequency.”
He added: “ We are still in discussions with both Suffolk County Council and the Cambridgeshire & Peterborough Combined Authority over certain details, but will publish the full timetable as soon as possible.
“We recognise the importance of this link to the communities served, and are pleased to be able to step in”
Stephensons is the largest independent bus operator in East Anglia, with depots in both Essex and West Suffolk.
With a turnover of around £10m, and providing employment for around 150 staff, the company provides both commercial and tendered local bus and schools services, private contracts, and extensive rail replacement.
The business was crowned ‘Top Independent Operator’ at the 2017 UK Bus Awards, and is locally owned and managed.