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The decision to scrap the controversial deal follows hot on the heels of De Lille's describing the proposed deal as unlawful.
The tourism body had proposed a three-year sponsorship deal to the tune of R900 million in exchange for kit and interview backdrop branding, stadium hospitality, and partnership announcements among other marketing perks.
The proposed deal came in for widespread criticism due to the country's sluggish economy.
"In a letter from the SA Tourism Board Chairperson, based on the advice I have given to the board and which I had publicly stated, that the deal should not proceed, the SA Tourism Board has agreed not to proceed with the proposal," De Lille said on Thursday.
"The SA Tourism Board will no longer proceed with the transaction, nor will it seek the concomitant requisite approvals for the proposed transaction.
"As stated before, in the current economic climate, the use of public funds must be carefully considered and for any department to fulfil its mandate, it must be done in a cost-effective way, exploring multiple options and with due consideration for all priorities."
De Lille, who was appointed to the ministry earlier this month, said she will be working with the agency to enhance South Africa’s position as a top tourist destination.
"I will also continue engaging SA Tourism and the department in more detail on the Department’s budget to ensure that we fulfil our mandate of growing visitor numbers to South Africa, providing the necessary support to enable growth, increase job creation and increase the sector’s contribution to the economy.
"This matter is now concluded, and we will continue working together to explore all avenues, create an environment conducive for the private sector to invest and crowd in on government initiatives within the legislative framework to grow tourism."
