- We show that vacuum-induced coherence in three-level atomic systems can lead to preservation of bipartite entanglement when two such atoms are prepared as two initially entangled qubits, each independently interacting with their respective vacuum reservoirs. We explicitly calculate the time evolution of concurrence for two different Bell states and show that a large amount of entanglement can survive in the long time limit. The amount of entanglement left between the two qubits depends strongly on the ratio of the nonorthogonal transitions in each qubit and can be more than 50%. Moreover, we find that as a consequence of vacuum-induced coherence, sudden death of entanglement is prevented for an initial mixed entangled state of the qubits. 2010 The American Physical Society.