The team had been due to face FIA stewards at a virtual hearing on Saturday after lodging a right of review over the penalty sequence that dropped Russell out of the points in Monaco.
Russell was hit with a penalty for speeding in the pit lane during the race, before later receiving a drive-through for failing to correctly serve the original sanction.
The Briton had been in podium contention before the penalty drama left him 12th at the flag.
Mercedes moved to challenge the decision after Alpine successfully overturned Gasly’s two five-second pit lane speeding penalties, with the Frenchman reinstated to third place days after the race.
Gasly had crossed the line third in Monaco before being demoted to seventh by the post-race penalties, only to be restored to the final podium position after Alpine’s right of review was accepted.
The decision came after the FIA examined data relating to the pit lane speed calculation, with Formula One Management acknowledging an issue with the measurement used at Monaco.
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That outcome triggered wider frustration, with some teams questioning why Gasly’s penalties could be removed when others had already served similar sanctions during the race.
In a statement, the FIA confirmed the matter would no longer proceed.
“The Stewards have been informed by Mercedes-AMG PETRONAS F1 Team that they are withdrawing the petition for Review in respect of the decisions of the Stewards of the 2026 Monaco Grand Prix, breach of Article B1.6.3a of the FIA F1 Regulations in relation to Car 63,” the statement read.
Mercedes team principal Toto Wolff said when the petition was lodged that the team wanted to be part of the process as the Monaco result continued to be examined.
“We’ve asked for a right of review, because you just simply want to sit on the table when decisions are being made,” Wolff said.
However, Wolff had also conceded the chances of success were limited.
“I still think it’s a long shot,” he said.
Although Mercedes has now stepped away from the matter, the controversy surrounding the Monaco result remains unresolved, with McLaren and Red Bull continuing their appeals to the FIA’s International Court of Appeal over Gasly’s reinstatement.
McLaren has confirmed its appeal relates to the stewards’ decision, the revised final race classification and the revised championship points, while Red Bull has also proceeded with its own appeal, according to reports.
The case will now continue through the FIA International Court of Appeal, with a hearing date yet to be announced.
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