The decommissioned Wanaka fish hatchery sits on a 3.7ha site enclosing the spring and source headwaters of Bullock Creek.
About 3700sq m of the hatchery, worth $1.17 million, was put on the market in May.
It included a vacant 3-bedroom house and was capable of being subdivided into six residential sections.
Chief executive Niall Watson said at last week's council meeting, while there had been some interest in the site, it had been taken off the market.
"We've decided to hold off until things turn around."
The proceeds from the sale were to go towards a new financing a new field centre building in Cromwell.
However, without a sale the development would not be able to go ahead, he said.
In the meantime, Fish and Game would continue to rent premises in Cromwell.
He would investigate a suggestion that a storage facility be built on the intended site so Fish and Game did not need to pay for storage for its boats.
Council chairman John Barlow said taking the site off the market was the right thing to do.
