Labour Party MP Louisa Wall has withdrawn her nomination for the Manurewa seat, which she has held since 2011.
Louisa Wall said she will be standing on the party list. Photo: RNZ / Johnny Blades
A party spokesperson said she will instead be standing for the party list in the September general election.
Earlier this month, it was revealed Wall was pursuing legal action against her party over a late nomination to contest the seat.
The Labour Party sought advice from a Queen's Counsel about the nomination from Waitematā District Health Board board member Arena Williams, which came in after deadline in early February.
It is understood the legal action centres on the timing of the nomination being received and accepted.
Wall said in a statement she had decided to withdraw her nomination "in order to bring to an end disagreement over the contested nomination process for the South Auckland seat".
She said she was sorry she wouldn't be continuing to represent the people of Manurewa, who she was proud to have served for the last nine years.
"I don't want the selection process matters to become an unwelcome distraction for the party and the government when all of our efforts need to be on rebuilding our country and our economy."
She said she would devote her time to campaign across the Māori electorate seats and advocating for issues close to her heart, including equity in women's sport and indigenous and LGBTIQ+ rights.
Two others are still in the running to stand in the electorate for Labour.