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Campaigners had raised concerns up to 90% of Dartmoor ponies could be culled due to new contracts with Natural England
Dartmoor ponies will be protected at their current levels following fears of a potential cull, ministers have said.
Campaigners had raised concerns that new Natural England contracts requiring reduced grazing on the Devon moor's commons could lead to the removal of up to 90% of the ponies.
But the Department for Environment, Food and Rural Affairs (Defra) said the animals will be removed from stocking rate calculations - meaning farmers would not face a choice between keeping ponies and maintaining sheep or cattle.
Defra said the long-term future of the ponies had been secured through a package of "new protections and financial support".
Pony numbers will be monitored across the moor to make sure they remain stable, the government added.
Dartmoor hill ponies have been part of the landscape for 4,500 years, but their numbers have dropped from 6,000 25 years ago to fewer than 1,000 today, and the breed has now been declared endangered.
A new pony supplement will be introduced into farming schemes to remove any financial incentive to reduce the population of Dartmoor's ponies.
Marian Spain, Natural England chief executive, said the agency had "always been clear" about the "central role" the ponies play to shaping Dartmoor's landscape.
Spain said: "The government policy changes announced today will enable us to work with farmers to secure the agreements we need to recover nature on Dartmoor."
Phil Stocker, chairman of the Dartmoor Land Use Management Group, said Defra's announcement gave pony keepers reassurance the breed was "a valued and essential part of the ecology and culture of Dartmoor".
'Support Dartmoor's biodiversity'
Campaigners said they were "happy" with the move made to protect the ponies.
Catherine Anderson, head of operations at the Dartmoor Pony Heritage Trust, said the support is fantastic.
"This will ensure herds maintain their place on Dartmoor for generations to come," she added.
Dartmoor Hill Pony Association chairwoman Charlotte Faulkner said she was thankful for the measures being introduced.
She added: "This will support Dartmoor's biodiversity, culture and tourism, keeping Dartmoor as we know and love it for generations to come."
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