|Nigel Farage, still the Ukip leader. Photograph: LNP/Rex Shutterstock|
The party said it had refused to accept Farage’s decision to go and his recommendation that Suzanne Evans, his deputy, be appointed as a caretaker leader.
Farage had said for weeks that he would step down if he did not become an MP, arguing that it was not credible to lead the party without being in the Commons. After losing by about 2,000 votes to the Conservatives’ Craig Mackinlay, the Ukip leader said he would stick to his pledge as a man of his word.
But the party said there was "overwhelmingly evidence" the UKIP membership did not want Mr Farage to go.
It said: "He has therefore been persuaded to withdraw his resignation and remains leader of UKIP."
UKIP won a 13% vote share in the election and has one MP, Douglas Carswell, who held his Clacton seat.
It puts the party in third place behind the Conservatives and Labour in terms of share of the vote.