The two activists, who had been camped out in the 150-year-old tree since Wednesday night, came down on Friday evening.
Brighton and Hove City Council officers agreed to take a look at alternative proposals and set a meeting for this Friday.
Council leader Jason Kitcat (only in Brighton) also called on residents to come forward with ideas to keep the tree while at the same time carry out the agreed works.
The elm tree, which sits on the side of the junction, was due to be chopped down as part of the Seven Dials roundabout improvements.
The council’s transport committee unanimously voted through the proposal in January after it was argued the tree obstructed views and was damaging the pavement.
However, significant public pressure, which included the support of Green MP Caroline Lucas, has persuaded officers to re-visit plans.
Tom Druitt, one of those camped in the tree’s branches, said: “We’re really pleased. If it wasn’t for the dedication of a number of people that tree would now be nothing more than logs.
"However, we can’t celebrate yet – there is still a danger.”
The city has one of the largest collections of mature elms after escaping the worst of Dutch elm disease in the 1970s and has the National Collection of Elms.
So for that reason alone, I hope the healthy elm tree at Seven Dials is saved.
- Posted using BlogPress from my iPhone
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