Memphis-Shelby County Schools said in a statement that the district would rent out the space to the non-profit organisation under its current rules.
An After School Satan Club will go ahead despite opposition from faith and education leaders in Tennessee.
Around 40 members of the faith community joined leaders at Memphis-Shelby County Schools to criticise the planned club and to question The Satanic Temple’s intentions in offering it.
According to local newspaper the Commercial Appeal, the protesters wanted to make it clear that students would need signed permission slips to attend and to express support for religious organisations that had partnered with the district.
“You see the faith-based community standing here,” board chair and local pastor Althea Greene told the publication.
“We’re going to stand up and we’re going to be vocal. Satan has no room in this district.”
The After School Satan Club (ASSC) is a federally recognised non-profit organisation and national after-school program with local chapters across the US.
The club, which is associated with the Satanic Temple, plans to host sessions at Chimneyrock Elementary School in Cordova from 10 January in the library.