Emma DeSouza is withdrawing her legal challenge to the British government's immigration policy in Northern Ireland.
It comes following a concession by the British Home Office last week.
In 2015, Ms DeSouza who is from Derry took a case when an application for a residence card for her US-born husband was rejected.
The Home Office deemed her British, but Mrs DeSouza never held a British passport.
She took the case on the basis that the Home Office considered her a British citizen because she was born in Northern Ireland.
She was told she could reapply identifying herself as British or renounce her UK citizenship and reapply as an Irish citizen.
Emma DeSouza claimed she never considered herself British so she could not renounce a citizenship she never had.
Last year, she lost an appeal taken by the British Home Office against an immigration tribunal ruling which found her favour in 2017.
It resulted in Ms DeSouza's legal team submitting papers to the Court of Appeal in Belfast to challenge that ruling.
Then last week, the Home Office announced that family members of British or dual British-Irish citizens from Northern Ireland would be able to apply for status through a post-Brexit residency process, known as the EU settlement scheme.
It has resulted her announcement that she is withdrawing her legal challenge.
In a statement she said the changes made through the case will require the Home Office to respect her right to be accepted as Irish under the Good Friday Agreement.
"We had hoped our legal challenge could help right that wrong and force the British Government to amend the statute to fall in line with its international obligations. But legally, with this concession from the Home Office, we regrettably can not proceed."