It was claimed earlier this month that Barca directors had decided to transfer-list the France attacker.
But Sport says the board has now performed a U-turn and chosen to stick with Dembele for next season - a decision based on two factors.
First, the board believed it ran against the club's principles to put up for sale a player who is now recovering from hamstring surgery and whose season is over.
Secondly, the board also called on the opinion of coach Quique Setien, who has insisted he wants to work with Dembele and believes he still has a lot to offer once fully fit.
There's now a belief inside the club that Dembele was previously let down by not having an individually tailored fitness regime designed for him - and also failing to recognise he joined Barca in 2017 with his body still growing. As such, management have accepted their share of the blame for his fitness problems since arriving from Borussia Dortmund.