She will rather be detained, Sri Lankan Deputy Foreign Minister Dr Harsha de Silva reported.
A claim by Sri Lanka was considered by Saudi Arabia and the execution request was pulled back, he said.
The lady was indicted in August, alongside an unmarried Sri Lankan man.
She was sentenced to death by stoning, while the man was sentenced to 100 lashes.
Saudi Arabia consented to revive the instance of the lady - a 45-year-old mother of two - prior this month.
There was no prompt remark in Saudi state media on the news the lady had been saved.
Sri Lankan anger
Saudi Arabia's starting choice to stone the lady was denounced in Sri Lanka.
Government official Ranjan Ramanayake said the Sri Lankan government had been educated about the lady's case when she had been indicted - in spite of the certainty she had been captured in April 2014.
"Islamic Sharia law says four regarded Muslims should be observers for this sort of case, yet this has not been conceivable for this situation," he said.
"Lamentably, not knowing the law, she has admitted under weight with no lawful help."
The case started challenges in November outside the UN compound and the Saudi consulate in Sri Lanka's capital, Colombo - with some requiring a restriction on sending Sri Lankan laborers to Saudi Arabia.
The Sri Lankan government says it is bit by bit diminishing the quantity of ladies sent to work in the Middle East.
