Thousands of teachers were told Wednesday that they can keep their jobs after an arbitrator ruled in their favor last month.

The letters stem from the rejection of the mayor's plan to remove the staff from 24 struggling schools. He wanted the teachers to re-apply for their jobs but an arbitrator's ruled that plan violated existing labor contracts.

In letters sent Wednesday, the Department of Education told 2,700 teachers they can head back to their assigned schools in September.

Mayor Bloomberg is vowing to fight the arbitrator's decision and an appeal has already been filed.

The matter is due back in court on Tuesday.