Amanda Bynes will remain under psychiatric care until 2015.
The child star has been deemed 'unfit' to appear in court, meaning she may not appear in front of a judge for 18 months.
Meanwhile, Amanda Bynes' mother has been awarded a mental health (LPS) conservatorship over her daughter.
Lynn Bynes has had her daughter's health and financial decisions in her hands since Amanda was admitted to a psychiatric hospital in August.
The child star's mum was due to attend a hearing on September 27, where a judge would make a decision over whether the temporary conservatorship she held would to be made permanent.
Today Lynn's attorney Tamar Arminak signified that would no longer be necessary as Lynn now holds LPS conservatorship, making her responsible for Amanda.
These are only for adults with mental illnesses listed in the Diagnostic and Statistical Manual of Mental Disorders.
"[Tamar] notified the court on Thursday morning that the petition was being withdrawn. There will be no hearing on Monday," a source told Radar.
The 27-year-old actress was put under conservatorship after she was forcibly admitted to a mental health facility in July after setting a fire in a residential driveway in Thousand Oaks.
Today one of her lawyers, Gerald Shargel, asked a New York court for a postponement for up to 18 months while the Hairspray star continues to receive psychiatric treatment at a South California hospital. This was in connection to an incident where Amanda allegedly threw a bong from an apartment window earlier this year.
"The likelihood is the case will be plea bargained. There are major weaknesses in the prosecution's case," a source told TMZ.
Earlier this week she was deemed unfit to stand trial.
It was claimed by her one of her lawyers that she doesn't have the mental capacity to understand the nature of legal proceeding in her DUI case.
The legal documents filed at the LAX Airport courthouse by her attorney Rich Hutton reportedly state that the Amanda isn't mentally competent of standing before a court of law.