A judicial review of the decision to turn the Oak National Academy into a government quango has been put on hold.
The British Education Suppliers Association, the Publishers Association and the Society of Authors were granted permission to proceed with the legal review of the controversial quango last year.
They had argued that the decision would pose an “existential risk” to their sector, and that the conversion of Oak amounted to an “unlawful state subsidy”.
A trial was due to take place this week, but the three bodies said in a statement that the “litigation has been put on hold with immediate effect”.
“The parties in the judicial review proceedings relating to Oak National Academy have agreed to a stay of the proceedings.
“We will continue discussions with the Department for Education in the hope that these will result in a satisfactory outcome for all concerned and remove the need for further litigation.”
The claim is on hold until September.
Tes reported education secretary Bridget Phillipson had offered a package of reforms to try and bring a legal dispute to an end. Today’s halting of the case suggests a settlement has not been reached.
A Department for Education spokesperson said: “We have agreed to a stay of litigation with the claimants. In the meantime, we will continue to act in the best interests of the school workforce while we seek a resolution to this dispute.”
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