Administration worker Cindy Prior has dropped legal proceedings against the Queensland University of Technology a fortnight after she was denied leave to appeal over a racial discrimination case against three students.

"QUT is pleased that Ms Prior has decided to discontinue legal proceedings against the university, but stresses there are no winners here," a university spokesperson said on Friday.

The administration officer involved in a racial vilification case has dropped legal legal proeedings against the Queensland University of Technology Credit:Glenn Hunt

The university said it would not pursue Ms Prior for costs because doing so "would be neither financially prudent nor appropriate".

No commercial settlement had been made, it added.