Family Planning has withdrawn its application for a licence to carry out abortions in Hamilton.
It sought permission from the Abortion Supervisory Committee in 2009 but says its application to carry out non-surgical abortions was challenged.
That was because it did not have a government contract to provide the service, having been unsuccessful in competing for a Waikato District Health Board tender.
Family Planning chief executive Jackie Edmond says it still wants to try to set up its own abortion services in other centres but the application process is very complicated and each area is likely to have different requirements.
Ms Hammond says Family Planning does not currently have any other licence applications lodged.