Tottenham have withdrawn their judicial review against the decision to award the Olympic Stadium to West Ham United after the London 2012 games.
Tottenham and Leyton Orient had appealed against the decision to award West Ham the stadium, but the deal collapsed last week after the Olympic Park Legacy Company (OPLC) blamed concerns over whether the ongoing legal challenges would put the future ownership of the stadium at risk.
A spokesman for the Department for Culture, Media and Sport (DCMS) confirmed that the appeal hearing would no longer be taking place.
"We have come to an agreement with Tottenham Hotspur, where all parties will bear their own legal costs," he told insidethegames.
The OPLC, government and mayor of London, Boris Johnson, have now come to the agreement that the stadium will remain in public ownership, although West Ham have indicated that they will still bid for tenancy once the Games end and are willing to pay an annual rent of around £2 million.