French president François Hollande has dropped plans to change the constitution to strip militants convicted of terror attacks of their French nationality, reports the BBC.
"A compromise appears out of reach," Mr Hollande said after the two houses of parliament failed to agree the reforms.
The proposals followed November's Paris attacks which killed 130 people.
But it ran into huge opposition and led to justice minister Christiane Taubira resigning in February.
France's president outlined the changes in the aftermath of the gun and bomb attacks by Islamist militants who targeted a concert hall, a major stadium, restaurants and bars on 13 November 2015.
The plans included emergency powers to be given a new status under the constitution - which is also being abandoned - and stripping those with dual citizenship of their French nationality if they were convicted of terrorist offences.
Sole French nationals were excluded from the proposal. Under international law, governments cannot make citizens stateless.
The lower house removed the reference to dual nationality when it approved the bill, even though opponents pointed out that the proposal would create a two-tier system - it could only be applied to dual-nationality French citizens.
The upper house, the Senate, restored the original wording that had sparked the initial debate.
Read more of this report from the BBC.
See Mediapart's coverage of the background to this story here, here and here.