The Government has shelved plans for an International Protection Centre in Coolock.
The Department of Justice wrote to local politicians this morning to inform them it was no longer considering the former Crown Paints site.
Violent protests took place at the site when Government appointed contractors attempted to carry out work last year.
Ongoing smaller protests have blocked access - with the prolonged nature of the project being cited by the Department in its decision.
In a statement the Department says: "The Department of Justice is no longer considering the offer of a potential IPAS accommodation centre at the former Crown Paints site in Coolock in Dublin.
"Since late 2023, a provider had been developing a proposal to convert the site to an IPAS Accommodation Centre. The prolonged nature of this particular proposal’s progress through development and planning stages have been significant factors in the decision to discontinue the appraisal of this offer.
"Factors in the appraisal of international protection accommodation include the site suitability, the value for money it offers, planning matters and any works required to meet the required standards.
"Consideration is also given to the location with regard to access to services, resident welfare, health and wellbeing, and the current level of need in the sector."