The FAA website still featured the mural as lot six in its Modern, Contemporary and Street Art sale tonight.
It appeared that a starting bid of 400,000 dollars (£262,450) had been made before the auction of the art work was halted.
Wood Green councillor Alan Strickland said he was delighted to receive a call from a journalist at the auction who told him that Slave Labour and Wet Dog, a second Banksy painting listed in the FAA catalogue, had been withdrawn from sale.
To have the mural withdrawn from sale at the 11th hour is a wonderful surprise for the community here in Wood Green. It suggests the level of international media attention has had a real impact.
Mr Strickland emailed FAA owner Frederic Thut tonight to ask why the sale of Slave Labour had not gone ahead and if there were any plans to auction it in the future.