Published Friday, 08 June 2012
Pat Finucane was murdered at his Belfast home by Loyalists in 1989. (© Pacemaker)
Counsel for the lawyer's widow Geraldine confirmed they were no longer pursuing claims that the Prime Minister made the remarks during a meeting at Downing Street.
Mrs Finucane is seeking to judicially review the British Government over the refusal to order a full, independent probe into the killing.
Her husband was gunned down at his north Belfast home by the loyalist Ulster Freedom Fighters in 1989.
The Finucane family have campaigned for a public inquiry and believed they were set to achieve that when they travelled to London to meet Mr Cameron last October.
Instead, they were told that a review conducted by a senior lawyer, rather than an inquiry, would take place.
In a statement filed as part of their legal challenge Mrs Finucane claimed the family were treated "cruelly".
According to her the only explanation for the apparent change of mind was the intervention of a person or persons unknown.
She had also alleged: "This view was supported by a comment made by the Prime Minister during the meeting when he said 'It is true that the previous administration could not deliver a public inquiry and neither can we. There are people in buildings all around here who won't let it happen'."
At a previous hearing it was claimed that potential cross-examination of Mr Cameron about this issue was being thwarted.
Lawyers for Mrs Finucane argued that an affidavit from the Prime Minister's private secretary blocked any chance to question him about the alleged comments.
They were to seek an order striking out a "hearsay" statement that Mr Cameron denies making the comments.
However, Mr Justice Stephens, who will hear the main challenge, was told today that this part of the case was being withdrawn.
Barry Macdonald QC, for Mrs Finucane, said: "We have decided not to pursue the application to strike out that averment and will not be proceeding with the allegation that the remark was made."
The full judicial review is expected to take place after the summer recess.
Meanwhile, Sir Desmond De Silva's review of the killing is continuing as he plans to report back by the end of the year.
Northern Ireland Secretary of State Owen Paterson has said he believes that the De Silva analysis is the best mechanism available to get to the truth of what happened in the case.