The Sisters of Mercy have taken back the two-hectare site donated to the State for the new national children's hospital, it was confirmed yesterday.
The site, near the Mater Hospital in Dublin's north inner city, was originally earmarked as the location for the national children's hospital - but it failed to get planning permission.
The Sisters of Mercy gave the 2.47 hectares to the State.
After it was turned down for planning permission by An Bord Pleanala and bids re-opened again, another 0.53 hectacres were offered for a future maternity hospital.
The additional space was offered on a lease with nominal rent. The land included the Mater Hospital building which is a protected structure.
However, the Mater bid to be the location was rejected three years ago by a review group set up by the Department of Health.
It was decided to build the children's hospital on the campus of St James's Hospital instead.
A spokesman for the Mater confirmed the land had now been transferred back to the Sisters of Mercy.
He said there were no immediate plans "for the recently returned land it donated to the State".
He added: "As a nil value was placed on the donated land, no cost was incurred by either the Mater Hospital or the State for the original donation of the land or when land was donated back from the State to the Mater Hospital."
A planning application to build the children's hospital at St James's was submitted last month. The hope is that it will get the green light at the end of the year or early 2016.
Some 12 acres have been made available on the 50-acre St James's campus for the new children's hospital and the site has been designed for future expansion.