A High Court judge has rejected an attempt by the London Borough of Croydon to obtain wardship over a seriously ill child.
Mr Justice Holman asked the parents of 11-year-old Melody Driscoll, the council and King’s College Hospital to try to resolve their differences by mediation.
The case became public after the BBC successfully challenged reporting restrictions.
Social workers in December sought to have Melody placed in foster care because of a dispute between the hospital and her parents over her medication.
But in January, the council withdrew this threat and issued an apology to the family but made the wardship application in March.
The BBC has reported that the judge gave the parties involved until 8 June to try to settle their differences.
A Croydon Council spokesperson said: “We do not comment on individual cases. However, it is always very difficult for all concerned to ensure the right decisions are made for children who have complex health and care needs when there are differing medical options. We will always seek to work with parents and hear the views of the child and the family.”