The two sides reached a contract extension through March 31, 2008.
A city study found it should switch services to Monroe Ambulance. Rural Metro had won the contract since 1988.
The contract extension will mean a continuation of services until the city decides on a new, long-term contract.
The study found Monroe Ambulance would be able to respond to emergency calls quicker because of its newer technology.
Rural Metro counters, saying it's the only accredited ambulance provider in Rochester and has agreed to meet all the city's criteria for the new contract, including faster response times.
City Council is expected to vote on a new contract by the end of the year.