The Ricoh Arena is no longer suing Northampton Town for ground-sharing with Coventry City.
In July, stadium bosses announced they were planning legal action against The Cobblers for effectively 'stealing' their customer.
The Sky Blues currently play at the Sixfields Stadium in Northampton and have signed a deal to stay there for at least three years.
This evening the Ricoh has confirmed it has dropped the claim 'so as to avoid any further distress to [Northampton] fans and to help clarify the position for long suffering Sky Blues supporters.'
– Statement from the board of Arena Coventry Limited
"We still believe our action against Northampton Town Football Club has strong legal merit.
"In light however of the Football League's decision to award the Golden Share to Otium Entertainment and the recent public statement made by Joy Seppala... it has become clear that even successful legal action will not bring the Club home from Northampton.
"We await Otium's best offer to return but to date we have heard nothing from them.
"Our focus remains on running our successful business."