Steve wrote to Armed Forces Minister Nick Harvey over an MoD review of training requirements which effectively meant a straight choice between the Flowerdown barracks and a base in Cambridgeshire.
In reply, Mr Harvey said: "It has been decided that the greatest efficiency will be obtained by retaining the Army Technical Foundation College (ATFC) at Winchester, which is better provisioned in terms of its infrastructure and proximity to training areas and facilities, giving it greater long term utility for training delivery."
Speaking after the announcement, Steve said: "This is really good news and further endorsement of Winchester as a first-rate and much valued Army training establishment.
"I hope this decision will allow the ATFC team to plan ahead with confidence in the long-term and give some very welcome reassurance to the local people who work there."