William Hill said that, after canvassing views from several major shareholders, its directors have decided the company will not pursue merger discussions with Amaya.
"Accordingly, the Board has informed Amaya that it is withdrawing from discussions and wishes Amaya well for the future," William Hill said in a statement.
"The Group has continued to focus on the four priorities set out by Interim CEO Philip Bowcock - online, technology, efficiencies and international - to deliver value for shareholders and will also continue to consider strategic alternatives where they have the potential to create shareholder value.
"Trading has continued to be positive in the second half of the year with work focused on improving Online performance across mobile gaming and key customer journeys.
"The Board continues to expect operating profit for 2016 to be at the top end of the previously guided £260-280m range.
"The share buy-back programme William Hill announced on 26 February 2016 has been suspended since 23 July 2016. We will now recommence the share buy-back programme."