A spokesperson for the district attorney said the office was told on Wednesday that Jackson's family is no longer interested in restitution, and a scheduled hearing on the matter was canceled.
Murray's attorneys planned to ask a judge to substantially reduce the restitution order, arguing that the singer was partially responsible for his own death.
Initially, prosecutors wanted the doctor to pay more than $100 million to Jackson's children.
Jackson's parents have each filed civil lawsuits against the promoters of Jackson's final concerts. Jackson's father, Joseph, is suing Murray for wrongful death, although the former cardiologist has filed court documents stating he is indigent.
A jury found Murray guilty on Nov. 7 of involuntary manslaughter in the pop singer's June 2009 death.
The Associated Press contributed to this report.