The NHS Trust responsible for mental health services in part of Staffordshire will become the interim provider of children's autism services from October.
Midlands Psychology, which provides services in the Stafford and Surrounds, South East Staffordshire and Seisdon Peninsula, Cannock Chase and East Staffordshire Clinical Commissioning Group areas, has been told their contract will end this month.
It comes despite it receiving a good rating from the Care Quality Commission just last week.
Parents concerned about the decision started a petition calling for a rethink, which has been signed by more than 2,300 people.
It was launched by mum of two children with full diagnoses, Roxanne Redford from Stafford, who says families have been left 'in distress'.
Another mum who backing the campaign to reinstate Midlands Psychology, Danielle Ayre, told Signal last week: "When it comes to autism, as most parents and carers will understand, we need to know what is going on.
"We need to have clear instructions, we need to know exactly who is looking after our children's mental health."
Midlands Partnership NHS Foundation Trust (MPFT) has now been confirmed as interim host provider.
Claire Bailey, Managing Director of Children and Families Care Group at Midlands Partnership NHS Foundation Trust said: “As the provider of NHS mental health services across south Staffordshire we are pleased to be announced as the lead provider of the autism service to children and young people on an interim basis.
“The continuation of high-quality care and support for children, young people and families who receive autism services is our main priority.
"We are now working closely with the CCGs and will work closely with the current provider to ensure that an effective transition is carried out.”