Heb.net will continue to provide its broadband service for another month.
The service was due to end on Tuesday 31 March, leaving many customers trying to find replacement internet services as the shutdown was announced.
HIE asked Scot.net, who host the service, to retain Heb.net for a further month.
Commenting Angus B MacNeil, MP for Na H-Eileanan an Iar, said: “This is a welcome decision and for those who have not yet found a new provider this will be a lifeline during this crisis.
"It is up to individuals to contact Heb.net through their own account page to ask for the service to be maintained, it will not automatically carry on.
"If you have not found a new provider contact Heb.net as soon as you can to ensure your service continues.
“I had written to Paul Wheelhouse MP Minister for Energy, Connectivity and the Islands to ask for an extension and am pleased that this is now happening. HIE are to be commended for this turnaround and for all the work they have done in helping people move to other providers.
“Given the current uncertainties it is good to note that there may be further extensions if needed. This will also be a chance to determine what continued demand exists for this service.”