The decision, taken at a lengthy meeting of the parliamentary party today, did not go to a vote and goes along with the recommendation of a sub-committee that met on the issue earlier this week, which was chaired by Michael Martin. The TDs and Senators agreed "by consensus" with the view of the party leader that entering the contest would not be in the best interest of the party.
Some 20 members spoke at the meeting, which lasted over three hours, much longer than had been expected. Many of those who did speak were in support of party leader Michael Martin including Limerick City TD Willie O'Dea. Not all those present however were in agreement most notably deputy leader Eamon Ó Cuív who spoke strongly in favour of the party running a candidate.
Several of those present said that the issue being pressed to a vote was never a realistic option, as it would have been seen as a challenge to the authority of the leader. At a press conference after the meeting Mr Martin said that it has been a difficult decision for the party and "understandably there have been different perspectives and position" expressed by members.
The meeting in Leinster House was the first parliamentary party meeting for Fianna Fáil since the summer break and the first since the party's failed overtures to TV man Gay Byrne became public.
Martin rejected the suggestion that he handled the situation badly, firstly by making what became a very public approach to the broadcast legend, and secondly by not been more encouraging to South MEP Brian Crowley who had expressed a very strong interest in contesting the election.
"I know that when you make a phone call to Gay Byrne that will happen," he said.
Mr Martin said he did not agree that Brian Crowley's willingness to run was badly handled, saying he met the MEP last Easter and spoke with him again during the summer and they agreed to wait until the end of August.
He said Mr Crowley is an excellent candidate but research conducted by the party suggested he was getting very much a Munster showing and his support was not strongly based nationally.
Fianna Fáil says it will advise members how to vote in the election once nominations close at the end of next month. The party also remains open to the possibility of facilitating the nomination of any independent candidate.

Four candidates have already indicated they have secured the support required by the Constitution. These are; Gay Mitchell of Fine Gael; Michael D Higgins of Labour; and Independents Seán Gallagher and Mary Davis.
A formal decision, on whether or not to field a candidate to run in the election, would be made by Sinn Féin early next week.