The battle for Victoria's most marginal seat is finally over, almost six months after the state election.
The Ripon electorate was handed to incumbent Liberal member Louise Staley by just 15 votes on a two party-preferred basis after the November 24 state election.
Unsuccessful Labor candidate Sarah De Santis argued she should have won the the ultra-marginal seat because she received an "absolute majority" of the vote.
But a settlement was reached outside of court, according to Labor spokesman Kosmos Samaras.
"Upon closed inspection of our scrutineers' notes we determined that in a recount, we would not fare well," he told AAP on Monday.
"So we withdrew the petition."
Liberal leader Michael O'Brien congratulated Ms Staley on her victory.
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