Derek Hatton, who was expelled from Labour in the 1980s for being a member of Trotskyist group Militant, has withdrawn his application to re-join Labour, a party spokesman has confirmed.
The former Liverpool City Council deputy leader, 71, submitted a membership application in September, which was officially approved in February.
But he was suspended less than 48 hours after re-joining when people drew attention to a tweet he wrote in 2012 that urged "Jewish people with any sense of humanity" to condemn Israel's "ruthless murdering".
A Labour spokesman said: "Derek Hatton has withdrawn his membership application and is therefore not a member of the Labour Party."