Station Manager Sean Norling said OUSA members voted not to privatise or disestablish Radio One in a meeting on August 5.
He said the decision came after a "multitude" of meetings with concerned music industry figures and 140 written submissions opposing the sale.
"Without your efforts and concern, the results may have been very different."
Radio One and the OUSA executive would now put together a plan to ensure the station engaged with students and improved its financial performance, he said.
"We have many great plans and initiatives. These things will be achieved to ensure the longevity of our fine station without compromising the diversity and excellence of our programming."
Radio One has six paid employees and 70 volunteers.
In May, OUSA commissioned Deloitte, a professional services organisation, to review its services and structure to prepare for an decreased revenue stream.
OUSA president Logan Edgar told the Otago Daily Times the association needed to consider how to reinvest student money in the most appropriate ways and Deloitte saw little commercial value in Radio One.
A student survey last year revealed Radio One was one of the least valued OUSA assets, he said.