The controversial proposal, which had outrgaed producers in France and Italy, has been withdrawn by agriculture commissioner Mariann Fischer Boel.
She said: "It's important that we listen to our producers when they are concerned about changes to the regulations.
"It's become clear over recent weeks that a majority in our wine sector believe that ending the ban on blending could undermine the image of traditional rosé.
"I am always prepared to listen to good arguments, and that's why I am making this change."
Opponents had warned that the practice of blending red and white wines could have severely damaged the businesses of traditional rosé producers.