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In response to your resignation email that you sent on [some date], consider this letter an acknowledgment of your decision to leave the organization. Your resignation is accepted and confirmed as of [some date]. Thank you for your work here at [Company Name]. We wish the best of luck in your next assignment.
Dear [manager's name], I am writing to cancel my previous resignation letter, dated [date on resignation letter]. Following our conversation, I'm happy to accept the new terms of employment we discussed. Due to a change of circumstances, I would like to remain in my position as [job name] at [company name].
If their decision remains to resign you should ask them to confirm this to you in writing to you, and you should then acknowledge this in writing, as above. If they don't confirm in writing, you should write out to them acknowledging their verbal resignation and confirm everything in writing.