The fire at Wiltshire Waste Recycling, off Monument Hill, near Devizes, is to be allowed to burn itself out under control.
A meeting between Wiltshire Council, Public Health England, the Environment Agency and Wiltshire Fire and Rescue Service decided on the tactic today.
At its peak last night and into the morning about 40 fire fighters were tackling hundreds of tonnes of domestic waste.
Those living in the area were advised to keep their windows closed last night and thick smoke was seen from some distance.
A spokesman for Wiltshire Fire and Rescue Service said today: “Firefighters will remain at the scene, utilising on-site machinery to maintain fire breaks and turn over affected piles of waste.
"This will allow access to the seats of fire, and water recycled from within the site will be used to tackle these as required.”
Public Health England said the risk to the public was low.
A spokesman said: “People are advised to take sensible precautions and, although there is no need to restrict daily movements, if you can see or smell smoke, you may wish to consider closing doors and windows as a precaution.”