Ministers have offered a concession in their overhaul of legal aid in England and Wales, which will allow defendants in criminal cases to still choose their own solicitor.
The U-turn comes amid opposition from the legal profession to a plan to introduce competitive tendering, based on price, for legal aid awards.
Ministers said it was clear client choice was seen as "fundamental".
The Law Society and Bar Council welcomed the move.
The government is planning to cut £220m from the annual criminal case legal aid budget in England and Wales.
Legal aid costs taxpayers about £2bn every year and criminal defence makes up more than half of the expenditure, a situation which ministers say is unsustainable in the current financial climate.
'Greater certainty'The government wants to see fewer but bigger organisations providing legal aid as part of a streamlined system in which those with a disposable income of more than £37,500 would not have automatic access to state support.
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End Quote Chris Grayling Justice SecretaryI have heard clearly from the Law Society and other respondents that they regard client choice as fundamental to the effective delivery of criminal legal aid"
But the Bar Council has argued this would result in the end of the long-held right of a defendant to choose a legal aid solicitor and people would effectively be allocated a representative on the basis of cost.
A senior judge warned last month people with disabilities would not be able to choose a lawyer who understood their condition, and those involved in complex cases would not be able to seek out specialists.
An online petition against "depriving citizens of legal aid or the right to representation by the solicitor of their choice" received over 100,000 signatures - the threshold required potentially to force a parliamentary debate.
Justice Secretary Chris Grayling said he was now prepared to reconsider the original proposal as long as what emerged still met the "core objectives" of his overall reforms to create a more cost-effective and efficient system.
"The rationale for proposing this change was to give greater certainty of case volume for providers, making it easier and more predictable for them to organise their businesses," he said in a letter to Commons Justice Committee chairman Sir Alan Beith.
"It is not a policy objective in its own right. However, I have heard clearly from the Law Society and other respondents that they regard client choice as fundamental to the effective delivery of criminal legal aid.
"I am therefore looking again at this issue and expect to make changes to allow a choice of solicitor for clients receiving criminal legal aid."
Mr Grayling said he was also prepared to consider arguments for a gradual consolidation of legal aid providers in order to preserve quality of representation and prevent "advice deserts" in certain areas.
Original legal aid changes
- Proposals introduce price-related tendering to represent defendants
- Ends current position where legally-aided defendants can choose a solicitor
- Critics say defendants will not get a fair trial if they need specialist advice in complicated cases such as fraud
- Expert law firms in particular areas say they will go out of business
- Government says reform is needed to cut legal aid bill
- Other proposals include axing legal aid for cases relating to prison conditions
"As I have consistently made clear, this is a genuine consultation," he added. "I have made clear throughout that I am open to alternative proposals that meet the same objectives, including delivering the same level of savings."
But the justice secretary said his department's settlement in the recent Spending Review - which will see it have to make a further 10% cuts in 2015-16 - should "leave no-one in any doubt" about the need for savings in legal aid.
The Law Society, which represents solicitors, said the the move was "great news".
"Client choice is important not just as a matter of principle but also as a matter of practicality," president Lucy Scott-Moncrieff told BBC Radio 4's Today programme.
"If people can choose their lawyer then lawyers will make every effort to attract work by doing their job as well as they can."
And the Bar Council said the concession was a "significant victory" for opponents of the government's wider proposals.
"We welcome the government's change of heart on this, but we hope it is also listening to the many voices which are clear that price competitive tendering in any form is not a suitable mechanism for allocating legal aid contracts," Maura McGowan QC, chairwoman of the council, said.
"Legal aid contracts should not just go to the bidders who are willing to do the work for the lowest price."
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