The Iraqi Special Olympics team has confirmed it will not now be coming to take part in the games in Ireland.
The young people were expected to stay in Larne, Co Antrim, during the international competition in June, but they have now pulled out because of the war.
A sign put up to welcome the Iraqi team to the town was vandalised last week, with the words 'Ulster says No'.
Service families in the area said the signs were inappropriate and called for them to be removed.
A Council statement at the time said it was mindful of the genuine concerns of people, but pointed out that this was nationally supplied signage.
It added that as a council it was not prepared to stand in judgment of these young people for whom the World Special Olympics meant so much.
The mayor of Larne, Bobby McKee, said he was disappointed at the Iraqis' decision.
He said the Iraqi team had notified the Council by fax last night.
They told their hosts they were not travelling at this present time but said later on they might, if the war was over or settled down.
