The infamous Gatwick Hotel in St Kilda has been taken off the market, which will provide a reprieve for about 100 vulnerable residents but is expected to anger long-suffering neighbours and police.

It had been hoped that the sale of the notorious boarding house to a developer would help rejuvenate Fitzroy Street and curb crime in the area, however a year-long campaign has failed to flush out a buyer willing to pay about $11 million.

The Gatwick in St Kilda. Credit:Thom Rigney

Co-owner Yvette Kelly confirmed that plans to offload the 64-room hotel had been shelved. She described repeated media reports of an imminent sale as "rubbish".

"It's no longer on the market... but like any person, if someone offered us a good price we'd probably take it," Mrs Kelly told Fairfax Media.