Coventry have withdrawn their appeal against the 10-point deduction they incurred for entering administration.
The automatic Football League punishment was triggered after a High Court hearing ruled that the football club was "in administration".
But Sisu, the consortium which owns the Sky Blues, argued the division of the club that is in administration did not hold any assets or staff of its own.
A formal appeal was then submitted last Thursday.
The club said in a statement with joint administrator Paul Appleton: "Whilst it was agreed to commence the appeal process with regard to the 10-point deduction by the Football League, following legal advice, the decision has now been made to withdraw the appeal to avoid further delay and costs to all parties."
The points deduction dropped Coventry from 10th to 14th in the League One table and ended their hopes of reaching the end-of-season promotion play-offs.
The club is being allowed to complete the season at the Ricoh Arena, their home since 2005, despite a year-long row over a claim for unpaid rent of £1.3m by the stadium's owners, Arena Coventry Limited (ACL).
In a separate statement issued by Coventry City FC (Holdings) Ltd on Wednesday, they said they had made it clear to Martin Reeves, ACL director and chief executive of the city Council, that they wanted a "negotiated solution", if necessary utilising the services of a mediator.
"The club's owners are 100% committed to its long-term future and are determined to put the club on a sustainable business footing to ensure its viability and success going forward," the statement added.