The group originally bought a 4.61% stake in the low-cost airline last April but then had two bids turned down in May, having apparently undervalued the company.
In August last year, IAG boss Willie Walsh said the airline would divest itself of the shares as the airline was not an investor.
Now the group has again put out a statement reiterating its previous comments.
The statement said: “International Airlines Group confirms that it does not intend to make an offer for Norwegian Air Shuttle ASA and that, in due course, it will be selling its 3.93% shareholding in Norwegian."
Norwegian’s shares have fallen 20% today following the announcement.
