Britain has withdrawn a threat to enter Ecuador's embassy in London to arrest WikiLeaks founder Julian Assange, who has taken refuge there.
"We consider this unfortunate incident over, after a grave diplomatic error by the British in which they said they would enter our embassy," Ecuador President Rafael Correa said in a weekly media address.
In a statement, Ecuador's government said it had received "a communication from the British Foreign Office which said that there was no threat to enter the embassy".
Ecuador was furious after the British government warned it might try to seize Mr Assange, who has been holed up in the building for more than two months trying to avoid extradition to Sweden.
He is wanted there for questioning over rape and sexual assault allegations.
Ecuador, which has granted the former computer hacker asylum, demanded that Britain's threat be retracted.
The latest move should improve relations between the two countries and allow more talks on Mr Assange's fate to take place.
For now, however, Mr Assange remains in the embassy with British police waiting outside.
Britain has said it is determined to fulfill a legal obligation to send him to Sweden.
President Correa said he shares Mr Assange's fears that if handed over to Sweden, he could then be extradited to the US to face charges over WikiLeaks' 2010 publication of secret US cables.
US and European government sources said the US has issued no criminal charges against the WikiLeaks founder and has launched no attempt to extradite him.
Ecuador's government said it never intended to prevent Mr Assange from facing justice in Sweden.
It has said that if he received written guarantees from Britain and Sweden that he would not be extradited to any third country then Mr Assange would hand himself over to the Swedish authorities.
