The eSafety Commissioner on Wednesday announced she is discontinuing Federal Court proceedings against X, formerly known as Twitter, after clips of Bishop Mar Mari Emmanuel being stabbed during a live-streamed sermon on April 15 remained on the platform for Australian users to see.

Commissioner Julie Inman-Grant said she had decided to consolidate action in the Administrative Appeals Tribunal on X Corp removing the videos.

"After weighing multiple considerations, including litigation across multiple cases, I have considered this option likely to achieve the most positive outcome for the online safety of all Australians, especially children," she said in a statement.

"As a result, I have decided to discontinue the proceedings in the Federal Court against X Corp."

X's Global Government Affairs account said it welcomed the news the eSafety Commissioner had discontinued the legal action, which sought the global removal of content that does not violate X's rules.

"This case has raised important questions on how legal powers can be used to threaten global censorship of speech, and we are heartened to see that freedom of speech has prevailed," it said.

A review into Ms Inman-Grant's decision to issue X the removal notice will be conducted by the Administrative Appeals Tribunal, as the commissioner stands by her decision.

"Our sole goal and focus in issuing our removal notice was to prevent this extremely violent footage from going viral, potentially inciting further violence and inflicting more harm on the Australian community," she said.