MP Iain Blackford says court action paves the way for transfer of ownership of Home Farm Care Home to NHS Highland.
A 2014 housing needs report on Staffin identified the need for new homes to retain and attract families and young people.
The Skye primary school pupils won the Gaelic Medium Education (GME) Reading Journey category in the national competition run by the Scottish Book Trust.
Roddy Dunlop QC for the Social Care and Social Work Improvement Scotland said his client was not completely satisfied that the motion for interim suspension of the licence should be withdrawn.
HC-One, the operator of Home Farm, confirmed the change of heart this week after a deal said to have been brokered by local MP, Ian Blackford.
The SNP’s Westminster Leader has also written to Chancellor Rishi Sunak to request immediate top up payments for careworkers elsewhere who are facing similar circumstances.