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We have a group that wants to allow users to rename files in a library but not be able to delete files. Does anyone know the right settings for permission levels to enable this restriction? This is SharePoint/O365 Online.

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You can create custom permission by

  1. Go to Site Settings
  2. Select Site Permission
  3. Select Permission Levels (from ribbon)
  4. Click Contribute (since this is the closest one based on your requirement)
  5. At the bottom, click 'Copy Permission Level'
  6. Give it a name, description then remove check from 'Delete Items'
  7. Click Create to Finish
  8. Update the SharePoint Group's Permission to this new Custom permission level

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