BT will not reopen the restaurant atop the BT Tower in central London, which was scheduled to relaunch in time for Christmas next year.
The skyscraper, previously known as the Post Office Tower, has not had a restaurant open to the public since 1980, when the Top of the Tower venue closed after 14 years.
BT, which currently uses the 34th floor restaurant space for corporate hospitality and company events, was planning to reopen it in time for the London Olympics with seating for 60-70 diners.
However, the company has now announced that it will not reopen the space as a restaurant in the immediate future.
A spokesman for BT told the London Evening Standard it had taken a "serious look" at re-opening the restaurant but had decided not to make it a priority. Sources reportedly suggested that BT decided it could not justify the time and money being spent on the project during a period of national belt-tightening.
Last year, BT had reportedly begun a search for a big-name chef to oversee the restaurant, with Heston Blumenthal, Jamie Oliver and Gary Rhodes - who runs a restaurant on the 24th floor of Tower 42 in the City - initially top of the list.
<span class=""noindex"">By Kerstin Kühn
E-mail your comments to Kerstin Kühn here.
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk
Looking for a new job? Find your next job here with Caterersearch.com jobs