Rajasegaran Manikam and Premawathy Balasupramariam rushed to Brauer College to share the news with their daughter Vanisre, 18, on Friday afternoon.

She was overcome with emotion and thanked the 90,000 people who signed an online petition she created.

Vanisre said she would be eternally grateful to everyone who had supported the family.

"I saw a text from a family member and I thought it was fake news," she said.

"I just wanted to make sure - I immediately called dad and they were screaming on the phone.

"I was beyond happy - I can't really describe how I'm feeling at the moment, I'm just so happy that it's all finally paid off."

The family moved to Australia from Singapore seeking a better life and moved to Warrnambool in 2015.

After spending $150,000 moving to Australia, the family spent a further $50,000 attempting to obtain permanent residency status.

However, that bid was rejected because Mr Manikam has the early stages of kidney disease.

Mr Manikam said he had no symptoms of the disease and with the help of medication and a vegetarian diet he has increased the function of his kidney from 20 to 47 per cent.

He also said he would not go on dialysis or get a kidney transplant when his health fails because he does not want to be a burden to Australian taxpayers.

After sharing the news with Vanisre, the family headed to Warrnambool East Primary School to inform Vela, 8, of the decision.

There were further scenes of jubilation as the youngest member of the family came to terms with the news.

Mr Manikam said he was feeling on top of the world.

He said he received a call from his lawyer, who asked the couple if they were sitting down before sharing the news.

"We were just shocked," Mr Manikam said.

"I don't know whether the news has sunk in."

Mr Manikam said the family was beyond proud to call Warrnambool home.

"Ever since we came it has been home, but today it is more than that, it is a family," he said.

Mr Manikam said the family had been overwhelmed by the support it had received.

"Warrnambool is a big family and we are grateful we are part of this family now," he said.

Mr Manikam said he was especially grateful to Member for Wannon Dan Tehan for his support.

"I'm just so blessed to be in this place," he said.

Mr Tehan said he was extremely happy with the decision.

"I am delighted with the news that the Rajasegaran family's application for a visa has had a positive outcome, and they will be able to remain in Warrnambool," he said.

"I thank the community for their incredible and ongoing support of the family.

"It is lovely to know that the family will be able to stay in Warrnambool and continue to contribute to the community, as they have since their arrival."

The family has welcomed members of the public to celebrate the news with them at a free event on Sunday.

Vanisre's music teacher Michael Ferguson organised the event to support the family as it waited for an answer.

And in a delightful twist of fate, the event will now be a party to celebrate news the family can stay.

Mr Ferguson said the free event would feature an array of live music at Flagstaff Hill.

Entry is free and there will be a barbecue.

"Sunday is going to be a big celebration," Mr Manikam said.

"Please come and pop the champagne with us.

"It's because of you this is possible - so please, everyone come to Flagstaff Hill."

The event will run from 11am to 2pm.

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