According to Defence Secretary Ben Wallace, plans to convert a former RAF facility into an asylum seeker centre have been shelved.
The facility at Linton-on-Ouse in North Yorkshire would be converted into an asylum centre for up to 1,500 males, according to plans released by the Home Office in April.
Villagers and the Hambleton District Council, however, disagreed with the decision and declared they would file a lawsuit.
Mr Wallace said that he had retracted his promise to provide the Home Office the land.
When the minister visited West Yorkshire on Tuesday, he was questioned about the plans.
He said: “I have withdrawn the offer to the Home Office for that site. It’s been with them for a number of months.
“I have obligations to do something else with that site, and you know there are other sites we made available to the Home Office if they wish to take it up.”
The Thirsk and Malton Conservative MP Kevin Hollinrake has previously argued that the village is unsuited for such a centre and has actively opposed the plans.
North Yorkshire MP Rishi Sunak, a candidate for the leadership of the Conservative Party, expressed his “delight” at the plans’ withdrawal, according to a representative for his campaign.