Harry Dunn’s alleged killer Anne Sacoolas will no longer face a UK court hearing next week as scheduled.
The US citizen had been due to appear via video link at Westminster Magistrates’ Court on Tuesday.
A Crown Prosecution Statement said: “Following engagement between the parties, the hearing on 18 January at Westminster Magistrates’ Court has been vacated.
“This is to enable ongoing discussions between the CPS and Anne Sacoolas’s legal representatives to continue.
“Mrs Sacoolas has a right to a fair trial. It is extremely important there should be no reporting, commentary or sharing of information online which could in any way prejudice any proceedings.”
Radd Seiger, spokesman for Harry Dunn’s family, said: “We have full faith in the Crown Prosecution Service and will wait to hear from them with further developments, hopefully in the near future.
“Harry’s family were obviously looking forward to the hearing on Tuesday so they hope an agreement will be reached sooner rather than later.
“It is vitally important for their mental health that justice and closure is achieved soon.”