Kendal College has announced it will not be going forward as part of official bids to take on Newton Rigg College, near Penrith.
Current Newton Rigg operators Askham Bryan announced it would pull out of running the college last year.
Two groups came forward to offer to take on the college and a strategic review was launched by the Government.
Kendal College has worked with, and offered advice and support to the groups on their plans to save the campus to continue the delivery of agricultural courses.
However, the plans submitted by both bidders were rejected by the Government because they had not met the strategic review’s standards.
They have now been granted an opportunity to resubmit bids, but Kendal College said local circumstances – including COVID-19 – said it would now have to take a step back to concentrate on its core educational activities in Kendal.
A statement said: “Kendal College will continue to offer advice and guidance on educational matters to those looking to maintain Newton Rigg for the future, however the college will now not play a part in any formal rescue package.
“Kendal College’s main focus has always been the support of educational provision in Cumbria, and in helping all Newton Rigg learners successfully complete their studies and have an ongoing plan for the future.
“Kendal College is working with Newton Rigg to support them through the process, and we will work over the coming months to ensure that there is continued education and appropriate progression routes in place for learners who are leaving Newton Rigg this July.