Shiromini Satkunarajah, who is studying electrical engineering at Bangor University, faced being sent to her country of birth with her mother Roshina on Tuesday morning.
The Home Office rescinded her deportation order on Monday, shortly after her local MP Hywel Williams raised a point of order in the House of Commons.
Miss Satkunarajah and her mother were due to be released from Yarl's Wood Detention Centre on Monday evening.
Hywel Williams MP said it was "the news we've all been hoping for".
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