Archway Steel, a family-run company based in Paxton Road??behind the stadium???s north stand, has been locked in a 10-year battle with Spurs over the club???s proposed ??400m redevelopment of White Hart Lane.
Last month the High Court rejected a challenge by the firm over a compulsory land purchase order and set a three-week deadline for any requests to appeal the verdict.
However, Archway Steel has now decided to drop any legal action and will instead negotiate with Spurs.
“We have decided not to appeal against his decision,” confirmed Archway in a statement.
“We were very pleased that the judge expressly acknowledged that we were perfectly entitled to pursue these matters and that the proceedings were a perfectly proper exercise of our rights.
“We have always been willing to negotiate with the club on a reasonable and proper basis. Our efforts towards that end have been unsuccessful so far, but we will continue to try to achieve a proper settlement by agreement if that is possible.
“We are now awaiting a response from Tottenham.”
In a statement on their website, Tottenham said: “The club has received confirmation that Archway Steel will not be applying to the Court of Appeal for permission to appeal the High Court’s decision last month to refuse their legal challenge of the Compulsory Purchase Order.
“The next step will be to vest the land in Haringey Council’s ownership and to agree the compensation amount payable to Archway.
“We shall also continue to seek to reach an agreement with Archway by private treaty. We shall provide a further update as matters progress.”