Minister for Justice Frances Fitzgerald is to establish a judicial inquiry into the matters surrounding the death of a garda sergeant.
GSOC had originally insisted it was the appropriate body to investigate the circumstances surrounding the death of Sgt Michael Galvin.
It appears the officer took his own life in Ballyshannon Garda Station a week ago. He and two colleagues had been the subject of an investigation by GSOC following a fatal road crash.
However, this evening GSOC also announced it is shutting down its own investigation. In a statement, the body said it had been listening to the concerns of Sgt Galvin's family, colleagues and public commentary.
The statement says while much of it had been misleading, inaccurate and inflammatory it did have the potential to damage public confidence in the police oversight system.
It added: “We were aware of the possibility of our investigation becoming compromised due to our prior engagement with Sgt Galvin.
"Following our consultations today, we have come to believe that we need stronger vindication of the appropriateness of our interactions with Sgt Galvin. We are therefore calling on the Minister for Justice to consider a Section 109 investigation. In other words, appointing a judicial figure to examine our interaction.
"We do not believe it is reasonably practicable for us to continue with our investigation," the statement added.
In her statement, Minister Frances Fitzgerald said she had decided to initiate an independent judicial inquiry. Earlier today she had met with AGSI, GRA and GSOC to discuss the issue.
Minister Fitzgerald also welcomed the fact that GSOC had discontinued its own investigation into the death of Sgt Galvin.
Earlier the Garda Representative Association, which represents over 10,000 rank and file gardaí, said that GSOC should not be involved in the investigation.
The father of three died at Ballyshannon Garda Station on 28 May. He appears to have taken his own life.
Earlier in May Sgt Galvin was questioned by GSOC about a traffic accident that happened in January in which a woman died.
The GRA said it was dismayed that GSOC is regarded as an appropriate agency to investigate Sgt Galvin's death in the light of its involvement with him.
The GRA has become the latest garda organisation to say that GSOC should not be involved in the investigation into the death of Sgt Galvin.
The association said today it fears the stress of that investigation made some significant contribution to the death of Sgt Galvin.
The GRA has said gardaí are dismayed that GSOC is involved and that the process needs to be transparent so Sgt Galvin's family, friends and colleagues can have confidence in it.
The Galvin family and the AGSI are also unhappy and have strongly criticised the Ombudsman's investigation into the fatal traffic accident during which Sgt Galvin was questioned.
The inquiry subsequently exonerated the sergeant but he was not told this. GSOC said that is a function of the Director of Public Prosecution.
Both Fianna Fáil and the AGSI asked Minister for Justice Frances Fitzgerald to invite Chief Justice Susan Denham to appoint a judge to inquire into the conduct of the GSOC officers who investigated the case.
The Chief Justice can under section 109 of the Garda Síochána Act invite a High or Supreme Court judge to conduct an inquiry and report back to the Minister for Justice.
The Garda Ombudsman says the case was referred to it by the Garda Commissioner and its investigation is continuing.
GSOC said this afternoon that under the Garda Síochána Act it must investigate the death.
