The Crown Prosecution Service previously said the case would be heard at Westminster Magistrates’ Court on Tuesday.
Harry Dunn’s alleged killer will no longer face a court hearing, to enable “ongoing discussions” with the Crown Prosecution Service to continue.
The CPS previously said in a statement that the 44-year-old’s case would be heard at Westminster Magistrates’ Court on Tuesday, but the hearing has now been vacated.
The suspect had diplomatic immunity asserted on her behalf by the US government following the collision, and was able to leave the UK 19 days after the incident.
In a statement issued on Friday, the CPS said: “Following engagement between the parties, the hearing on January 18 at Westminster Magistrates’ Court has been vacated.
“This is to enable ongoing discussions between the CPS and Anne Sacoolas’s legal representatives to continue.
“Mrs Sacoolas has a right to a fair trial. It is extremely important there should be no reporting, commentary or sharing of information online which could in any way prejudice any proceedings.”
The announcement follows a statement last month in which the CPS said it remained “committed to securing justice in this matter” and that the case would be heard on Tuesday.
Immediately after December’s statement, Sacoolas’s legal representatives said: “While we have always been willing to discuss a virtual hearing, there is no agreement at this time.”
A decision was reached to charge Sacoolas with causing Mr Dunn’s death by dangerous driving in December 2019.
Reacting to the announcement, the Dunn family’s spokesman, Radd Seiger, said the hearing has now been postponed.
Issuing a statement, He said: “We have full faith in the Crown Prosecution Service and will wait to hear from them with further developments, hopefully in the near future.
“Harry’s family were obviously looking forward to the hearing on Tuesday so they hope an agreement will be reached sooner rather than later.
“It is vitally important for their mental health that justice and closure is achieved soon.”