A plan by a Welsh assembly committee to buy a £750,000 plot of land next to the body's under-construction chamber is off.
A new £55m debating chamber for the assembly is under construction
Assembly Deputy Presiding Officer John Marek, who is on the committee which was handling the negotiations, told AMs on Wednesday that the owners of the land had decided to retain ownership of it.
The deal was first mooted amid concerns about the possibility of a neighbouring development dwarfing the assembly's new £55m home, which is being built in Cardiff Bay.
The neighbouring plot already has planning permission for a six-storey office block.
But Dr Marek told the assembly on Wednesday that the House Committee had been told that the owners of the land were to retain its ownership.
Dr Marek added: "We have this week been formally notified that the owners of the land have decided to retain ownership of it.
"The decision will be formally reported to the next meeting of the house committee on 18 March."
The leader of the Welsh Conservatives in the assembly, Nick Bourne, who had opposed the purchase plan, said: "Could I say on behalf of my group that we certainly welcome that piece of news.
"I wonder if I could ask the House Committee representative to keep the whole assembly updated on any developments so we are aware of any financial obligations that may be entered into by the assembly."