The government has abandoned plans to accommodate asylum seekers at a hotel in Rooskey, Co Leitrim.
The Shannon Key West Hotel had been earmarked as an accommodation centre for 80 people.
However, the Department of Justice has confirmed that following legal advice that the plans have now been dropped.
It is because of difficulties over the lease agreement between the company renting the hotel - who wanted to turn it into a tourist spot - and the owners.
The hotel was damaged in two arson attacks in the last four months.
In a statement, the department said the decision was taken after legal advice from the Chief State Solicitors Office, "which found difficulties with the lease agreement between the owners of the hotel, and the operator renting it, which made proceeding with the proposed centre unviable".
The department said it is committed to sourcing suitable accommodation for asylum seekers and a "regional procurement process" is under way.
