Sue Gray will no longer take up a new role in Sir Keir Starmer's government after quitting as chief of staff.
The former chief political advisor has turned down the role as envoy for the nations and "is going to focus on other things."
Sources close to Gray said she decided not to take up the role after Downing Street figures suggested the prime minister was having second thoughts about the job offer.
The Guardian reported on Tuesday that Mr Starmer was preparing to withdraw the job offer over fears of media attention on Ms Gray who was responsible for investigating parties in Downing Street during the pandemic.
Ms Gray was dismissed as chief of staff shortly after Labour won the general election following weeks of negative briefings about her, including a row over her salary.
However, one source told the Financial Times that she "has taken a decision not to take the role" and is instead "going to focus on other things."
"She’s taken time to think about it properly, talking to stakeholders, but ultimately she’s decided she doesn’t want to do it.”