The South Yorkshire Police mounted section based at Cudworth will not be closed as part of the force's cuts.
It had been suggested the unit, based at Ring Farm on Carrs Lane, Cudworth, should be moved to West Yorkshire's Police mounted section in Wakefield.
The mounted unit costs about £1m a year and the force has to save £43m by 2015.
It was announced on Tuesday the unit will stay in Cudworth, but the 12 horses and PCs will be reduced to ten horses and eight officers.
Inspector James Revitt said he was delighted.
"We're very pleased it's staying. It would be nice to retain all the staff but times hard and the force has to make tough decisions.
"One of the benefits of staying here is that if things improve, who knows maybe one day we might go back up again."
Insp Revitt said the two horses will retire naturally and then go to the Horse and Pony Protection Association.
He said the value of horses to the force was enormous and that in a crowd situation, one horse could do the work of 20 fficers.
Shaun Wright, Police and Crime Commissioner, said the mounted section added value to the police service and was an effective tactic to any police operation.
“I believe safeguarding the force’s mounted section will help achieve my policing priorities, as the horses improve South Yorkshire Police’s visibility and help reduce crime.
“In these times of austerity, savings have been made. I am confident the mounted section will still be able to maintain their high visibility and help keep South Yorkshire’s streets safe with the savings we have introduced. We will also make additional savings through mutual aid.”