Hackney Council is set to bring parking wardens back in-house when its current contract ends in March 2022.
The council said the move would improve services and protect the pay and conditions of 130 parking enforcement officers.
The move has been welcomed by Unite the union, who has called on other London boroughs to get rid of their outsourced parking contracts.
Unite regional officer, Onay Kasab, said: 'This is tremendous news. Unite has campaigned, lobbied and taken strike action to win exactly the points now agreed by Hackney council.
'It has been a tough campaign, but it has resulted in a great win that should send a clear message to other councils in London that the days of the flawed outsourcing business model are numbered.'
Cllr Jon Burke, Hackney Council's cabinet member for energy, waste, transport and public realm, said: 'I’m delighted to be overseeing the insourcing of parking enforcement - which plays a crucial role in ensuring adequate parking for local residents and safeguarding our borough from excess traffic and pollution - as the next step in our journey to ensure greater public ownership and control of local government services.'