It is being reported that the tender to provide a Direct Provision centre in Oughterard has been withdrawn by the applicant.
It comes after recent protests by residents of the Co. Galway village over the centre.
They had appealed to the Department of Justice to engage with them over alternative models for accommodating asylum seekers.
Publican Rory Clancy, spokesman for a demonstration supported by over 2,000 people at the weekend, said the community was once again asking the department to “come and speak to us here in Oughterard”.
He appealed to officials to “listen to some solutions which we have put together as a community, and start listening to the people”.
“We welcome people into the community under different circumstances,”Mr Clancy said.
“Direct Provision centres are not homes – we are all entitled to a home, and that’s what we would love to give the people,” he said.