Auckland Council will not take any further legal action against the occupy Auckland group, but the injunction stopping them from protesting remains.
Lawyers for the council have filed an application to discontinue the committal proceedings against the occupiers for breaching a trespass order.
A hearing was held in February when eight main protesters were meant to have provided reasons why they should not be subject to imprisonment or a fine if they breached the trespass order at Aotea Square.
The case was adjourned after the judge decided there had been an error in the way the order of committal notice had been issued and said it had to be served individually to each person.
An appeal against the validity of the trespass notice is due to be heard in September.