PC Smith was placed in Saltburn five years ago and developed close links with local people and businesses, including Scott Hill, owner of Windsor's Bar - who along with his manager Doreen Hawkins - formed petitions requesting PC Smith be allowed to continue to serve the local community.
Reactions were so strong in the community that police bosses have allowed him to stay.
Chief Constable of Cleveland Police, Sean Price said: "I fully understand the reasoning behind the proposed move and desire to spread his expertise and skills to other parts of the Cleveland Police area. However, having balanced this against his contribution in Saltburn, and the high regard in which he is held by so many of its residents, I felt he should stay. If we are serious about neighbourhood policing, we have to listen to our communities. I look forward to seeing him continue to do an excellent job in Saltburn."
PC Smith said: "I'm absolutely delighted to be staying in Saltburn and am grateful to the local community for all their support. I feel privileged to be able to continue serving such a great town."