Royal Surrey County Hospital and Ashford & St Peter's merger rejected
The planned merger of two hospitals will not now go ahead, the NHS trusts have announced.
In a statement, the Royal Surrey County Hospital said the merger with Ashford & St Peter's would not offer the best financial stability.
In March the merger was put on hold after both trusts spoke of "significant" pressures on the NHS.
The Royal Surrey board said a review had concluded a merger would not offer the trust the "greatest opportunity".
The board of Ashford and St Peter's said it had accepted the merger would not now proceed.
In a joint statement both trusts said: "Both organisations are committed to continuing to work together... building on the positive relationships that we have developed over recent years."