In December last year, Fair Trading suspended his licence for 10 years and permanently banned his company Toplace from engaging in construction work.
Nassif originally appealed this decision and a hearing was set down for Monday at the NSW Civil and Administrative Tribunal in Sydney.
Nassif is alleged to have obtained a $150 million loan from Westpac via fraudulent documents.
But the accused fraudster's lawyer Joseph Harb told the tribunal his client no longer wanted to move forwards with the legal bid.
"My office last night wrote to (Fair Trading). It indicated that we've received instructions to withdraw the application," he told NCAT member Theresa Simon.
Barrister Mark Fozzard said Fair Trading would be seeking its legal costs from Nassif.Â
NSW Police issued an arrest warrant for Nassif in June, alleging he obtained a $150 million loan from Westpac through fraudulent pre-sale documents of an apartment complex in Castle Hill.
The 55-year-old left the country on December 22 with police seeking the public's assistance on his whereabouts after a two-year fraud investigation.
In stripping Toplace and Nassif of their licences, Fair Trading found both had engaged in improper conduct.
Toplace, which boasted a billion-dollar development pipeline on its website, was placed into administration in July putting several major unfinished projects and defective builds in question.
The company was established in 1992 and is one of Australia's largest privately owned construction and property development companies, with numerous high-rise apartment projects under way in Sydney.
Nassif has also sued talkback host Ray Hadley for defamation over comments about his work.
The developer is the father of Sydney lawyer Ashlyn Nassif, who has been charged with fraud over the alleged $150 million development loan scheme.
Earlier this year, Jean Nassif was called to appear before a NSW parliamentary inquiry into allegations of impropriety at Hills Shire Council but declined to give evidence via video link from Lebanon for legal reasons.
He has also sued Nine-owned 2GB and talkback host Ray Hadley for defamation over comments about his work in the construction industry.
In August, Nassif was ordered to provide $900,000 in security to keep the Federal Court case alive.
These amounts were to be paid in three instalments and will be transferred to Nine if Nassif loses the case.
