A county court judgement saying Boris Johnson owed £535 has been removed by a county court.
The Prime Minister‘s team had said they were planning to appeal the issue after it was first brought to light by Private Eye magazine.
The debt was dated around 26 October last year – less than two weeks after a Conservative Party donor told the party he was making a donation of £58,000 relating to refurbishments to Mr Johnson’s Downing Street flat.
The PM has repeatedly said he paid for the refurbishment of the private flat above Number 11.
A court official confirmed there was no longer an order against Mr Johnson following a ruling by District Judge Hammond.
Records state the claim was made by someone called Yvonne Hobbs for “defamation” and “committed repeated defamation” by “The Rt Hon Boris Johnson” at “10 Downing Street”.
Before it was announced the order had been struck out, the Prime Minister’s spokesman said: “We are moving at speed to get this removed.
“Courts do have the power to strike down vexatious claims as an abuse of the court, and they do issue various orders restricting litigants’ ability to continue with further claims.”
Mr Johnson has refused to answer whether he paid for the initial cost of the Downing Street flat renovation or whether a donor or the Conservative Party funded it and he paid the amount back.
The initial debt judgement was issued in the county court through the Online Civil Money Claims service.
If the order had not been struck out, there was a chance bailiffs may have been ordered to recover the money from Mr Johnson.