The Istanbul giants have informed the public that they will not pursue legal action against Uefa and the TFF, but so far have not provided any further information
The Istanbul club won the Super Lig last season, but their title victory was soon called into question by a string of match-fixing allegations.
The TFF made a late decision to withdraw the Yellow Canaries from Europe's premier competition, and replace them with Trabzonspor.
The club had announced their intention to sue the governing bodies for the losses incurred on the side following the withdrawal, and took their case to the Court of Sporting Arbitration in (CAS) in January.
However, they have now told the Turkish stock exchange that they will be dropping the suit, but declined the opportunity to give any further details.
Fenerbahce have seen their share prices go up by more than five per cent in the wake of the announcement.