Bangladeshi writer Taslima Nasreen has been given a one-year visa by the Centre and allowed to stay in India till August 2015.
Earlier the government had given a visa extension of two months pending scrutiny of her application.
After the decision, an upset Taslima, 51, had tweeted: "Indian govt has cancelled my resident permit that I started getting since 2004 (sic). Issued a temp (sic) tourist visa for 2 months. Beyond my imagination."
Later, she met Union home minister Rajnath Singh on August 2 to press for her case and the minister is understood to have assured her of a favourable decision.
According to home ministry sources, Taslima's visa has been extended for one year, till August 2015.
Nasreen left Bangladesh in 1994 after receiving death threats from Islamic fundamentalists who claimed her works, especially 'Lajja', were meant to insult their religion. She has been living in exile in the US, Europe and India since then and holds a Swedish passport now.
She has been allowed an Indian visa on a continuous basis since 2004. On many occasions she had expressed her wish to live in India permanently, especially in Kolkata. She had to leave Kolkata in 2007 following violent street protests by a section of Muslims against her work.