Tops Day Nurseries, based in Bournemouth, will take over the provision from 1 September.
Parents, staff and public sector union Unison had campaigned to save the nursery after the college announced its decision two months ago to close it in August.
At that time the college said the nursery, which is non-profit making, was no longer financially viable.
Following a 30-day consultation with staff and parents, the college approached Tops Day Nurseries with a proposal for it to take over the running of the nursery.
Tops Day Nurseries was started 20 years ago by Cheryl Hadland and runs ten other settings in Dorset, Hampshire and Somerset, many of them workplace nurseries attached to NHS hospital sites.
Ms Hadland, managing director of Tops Day Nurseries, said, 'When we first considered the option to take over the Isle of Wight nursery we saw it as a very positive opportunity and felt that we could turn it around. The facilities at the nursery are extremely good and we have heard endless praise from the parents about the staff and the nursery's value to them.'
Finance director of Tops, John Bailey, told Nursery World, 'Operating and managing nurseries is a unique skill. We have expertise in running workplace nurseries and find our flexible approach works.'
Parents will be able to make bookings per quarter of an hour, rather than by session, which was how the nursery had previously operated. Mr Bailey said that this made it easier for parents working shifts.
The nursery will be open 52 weeks a year from 7.30 to 6pm and will also run an out-of-school club for five- to 11-year-olds.
Stephen Lamdin, financial director at the college, said it was 'a victory for the community and all involved.'
