Negotiations with radio transmission provider, Arqiva have been ongoing for nine months with the station due to go 'off air' on its digital platform at the end of March.
The agreement comes after tens of thousands signed a petition and MPs debated Premier's future in Parliament.
The #SavePremier campaign led to Communications Minister Ed Vaizey stating that he hoped Arqiva "does do the right thing by Premier".
The deal means Premier Christian Radio's 500,000 regular listeners will continue to enjoy the breadth of content available via DAB as well as Freeview and medium wave radio in London.
Speaking about the agreement, Peter Kerridge, CEO of Premier Christian Radio, said: "On behalf of our nationwide audience and army of supporters, we are naturally delighted to secure our continued presence on Digital One in this, our 20th anniversary year.
"We are very much aware, from the hundreds of testimonials we receive from listeners, just how important Premier's round-the-clock voice is to so many people."
Steve Holebrook, Managing Director of Terrestrial Broadcast at Arqiva, said: "We have worked with Premier Christian Radio ever since they launched on national digital radio in 2009 and we're pleased to have reached a new agreement with them to remain a national station on Digital One."