Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.
This was after Masoga and the ANC Youth League agreed to give the ANC time to intervene and assist in resolving the matter.
"We moved the matter out of court to deal with it politically ... it belongs on a political platform," Masoga said outside the court.
In a statement, ANC general secretary Gwede Mantashe welcomed Masoga's decision to halt his legal challenge after receiving advice from the ANC leadership.
Mantashe appealed to ANCYL structures to renounce "public engagement with the media" and to "observe recognised internal platforms of engagement on these matters".
In April, Masoga was ousted as Limpopo chairman at a chaotic ANCYL conference. He was replaced by Frans Moswane, who is aligned to ANCYL president Julius Malema.
Masoga charged that the conference was unlawful and claimed that the new leadership was elected after Malema took over proceedings. Masoga then tried to reconvene the conference.
He and three others were accused of disobeying an ANCYL national executive committee instruction not to reconvene a second elective conference.
On Tuesday, he said he hoped the ANC would "do the right thing" and reconvene an elective
However, ANCYL spokesman Floyd Shivambu said yesterday that the disciplinary action would go ahead. - Sapa