Marine Le Pen is to abandon all plans to leave the European Union and restore the French franc, accepting that her high-risk strategy has proved a costly error for the party.

The Front National’s leadership will hold a forum after the parliamentary elections next month to thrash out an entirely new policy.

“There will be no Frexit. We have taken note of what the French people told us,” said Bernard Monot, the party’s chief economic strategist.

“I continue to think that the euro is not technically viable but it makes no sense for us to keep insisting stubbornly. From now on our policy will be to renegotiate the EU treaties to give us more control over our budget and banking regulations,” he told The Telegraph.

A chorus of senior figures in the Front National said the furore over currency policy had distracted from its core messages on law and order, immigration, and the clash with Islam, causing a haemorrhage of votes in the final six weeks of the presidential campaign.