The seven-year-old Newfoundland, who has been credited with helping save three lives at Sennen Cove in Cornwall, lost his job when the Royal National Lifeboat Institution (RNLI) decided that his services were no longer required.
News that the celebrity 14-stone dog was no longer allowed to carry out his beach safety demonstrations sparked petitions and campaigns all over the country to see Bilbo return to work.
Steve Jamieson, Bilbo's owner, said: "At the moment they're still in discussions but they've said it looks likely that Bilbo will be allowed back. "I'm delighted because there were so many people who were really upset. Bilbo's popularity is absolutely huge."
He added: "The public pressure has been beyond anything I'd ever expected. People got so enraged by the whole thing that it all came to light. People were phoning me from all over the country. I'm tremendously grateful for all the support from the public."
Jim McKenna, chief executive of Penwith District Council, said: "We had a very constructive meeting on Friday and we hope to issue a joint press release next week."
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