Attorney-General Simon Corbell said he was preparing a response to the bail ruling which he would make public later this month.

In November last year, Justice Hilary Penfold handed down a bail decision in the case of street preacher Isa Islam, who had been accused of attempted murder after repeatedly stabbing a man at the Ainslie shops in 2008.

Justice Penfold refused to grant Islam bail but declared the territory's laws - which have a presumption against bail for people accused of murder and other serious offences that carry a potential life sentence - were incompatible with its Human Rights Act.

The ground-breaking decision, which could prompt a rewrite of ACT bail laws, was a first for the territory and the second in Australia.

Justice Penfold's findings were appealed by the Government but the appeal was put on ice pending the outcome of a similar case in Victoria, involving Melbourne woman Vera Momcilovic, who was convicted of drug trafficking more than three years ago after police found 400g of the drug ice in her apartment.

The Victorian Court of Appeal found the state's drug laws were incompatible with its human rights charter, because it placed the burden of proof on the accused rather than the prosecution, forcing Momcilovic to prove that the drugs did not belong to her.

The case went to the High Court and Mr Corbell sent lawyers for the ACT Government to intervene in the appeal.

In July, the High Court quashed Momcilovic's conviction and ordered a re-trial, but found that Victoria's human rights charter, which is similar to the ACT's laws, was valid and allowed judges to interpret legislation according to human rights laws.

In a statement, Mr Corbell said the Islam appeal had been discontinued because Islam had already gone to trial and bail was no longer an issue.

Islam was acquitted of attempted murder but found guilty of intentionally inflicting grievous bodily harm and sentenced earlier this year. He is appealing against his conviction.

Mr Corbell said the implications of the High Court decision were still being considered and he would report to the Legislative Assembly later this month.

''In light of the fact that Mr Islam's trial [to which bail was relevant] is no longer current and my obligations under the Human Rights Act have been substantively discharged, together with the views of the High Court in relation to the status of a declaration of incompatibility, I have decided to no longer pursue the appeal,'' he said.

''I have advised Mr Islam's lawyers and the Director of Public Prosecutions. I intend to update the Legislative Assembly on this matter later this month. As I have previously advised, I will respond to the declaration of incompatibility within six months.''

Mr Corbell said the High Court judgment meant judges were validly interpreting law according to human rights legislation. ''None of the [High Court] judges considered that a declaration of incompatibility involved the exercise of judicial power, while a majority held that, whatever its character, it was compatible with proper judicial functions.''