According to the UK based PFC Auctions, the vial containing dried blood sample of Reagan taken after a 1981 assassination attempt would now be donated to the Reagan foundation instead, the BBC reported.
On-line bidding on the vial, which had reached about USD 30,000 was suspended today following outrage by The Ronald Reagan Presidential Foundation based on the island of Guernsey, a British dependency.
Reagan's family and surgeon had also criticised the move as an invasion into his privacy.
The foundation, which had threatened legal action, expressed happiness over the decision, saying the blood would stay "out of public hands" now.
The donor, who bought the vial in February at another auction for USD 3,550, agreed to call off the auction. He, however, wished to remain anonymous, the Reagan Foundation said.
Reagan was the 40th President of US and served from 1981 to 1989.