The Department of Justice has postponed plans to accommodate asylum seekers on Achill Island.
It was planning to transfer 13 vulnerable women to the Achill Head Hotel.
The hotel was to provide emergency short-term accommodation to the women, who have come to Ireland seeking international protection.
The department says they were to be in Achill for a "maximum stay" of three months.
However it says as an ongoing protest remains in place outside the hotel, the department has "regrettably" decided to postpone that decision.
It suggests that asking the women to move there would "not be in their best interests", as they may be vulnerable while awaiting decisions on their protection applications.
Officials from the department have been engaging with public representatives from the area since last week.
While on Wednesday night, they met with elected and community representatives in Achill.
They discussed community concerns and the engagement continued on Thursday.
In a statement, department says it is "disappointed" at the continuing protest but it will continue to engage in an effort to resolve the situation.
This is the latest in a string of similar moves, following protests around potential accommodation for asylum seekers.
The most recent being in Ballinamore, Co Leitrim.
Last week, campaigners said plans for a direct provision centre at apartments there had been 'paused'.