Northern Ireland Secretary Sir Chris Bryant has said he will ban the contentious Orange Order parade at Drumcree.
The dispute has led to a stand-off between Orangemen and nationalist residents of the Garvaghy Road in Portadown lasting almost two weeks.
Sir Chris said the chief constable advised him “it would not be possible to enable the procession to happen without a major intervention which would carry an unacceptable risk of serious injury, disorder and a wider contagion effect across Northern Ireland”.
His decision has been welcomed by Sinn Féin and the SDLP, but DUP leader Gavin Robinson said he now needs to “explain what his government intends to do to restore confidence in the rule of law”.
The move comes on the 13th day of deadlock between residents and the local district lodge of the Orange Order.
The Parades Commission had ruled that the march, on Sunday 27 September, could go ahead with restrictions in place.
But the parade, from Drumcree Church into Portadown, did not happen due to a large protest on the Garvaghy Road.
Under legislation, a secretary of state can overturn a Parades Commission determination, especially following some form of input from the police.
Sir Chris had been coming under increasing pressure from Sinn Féin and the SDLP to stop the parade.
On Friday night, Sir Chris said: “The Parades Commission have advised me that while ultimately a matter for the courts to determine, the commission is of the view that, in light of this current assessment by the chief constable, the original determination does not now have enduring legal effect.
“Consequently, and in the interests of wider public interest and safety, I’ve come to the conclusion that the circumstances under which that decision was made have now changed considerably.
“As a result, the procession cannot go ahead as it was determined.”
Chief Constable Jon Boutcher had asked the secretary of state to review the Parades Commission determination allowing the Drumcree parade.
In a statement on Friday night, Boutcher said his “current assessment was that all available, lawful and proportionate options to facilitate completion of the procession had been exhausted”.
“Any remaining options would have required a substantial public order intervention,” he said.
He added: “Further to this, such an operation would in my view have had not only catastrophic long-term consequences for trust and confidence in policing, but for the Northern Ireland Executive and the peace process.”
Earlier, First Minister Michelle O’Neill confirmed she had received a letter from police investigating protests over the Drumcree parading dispute.
On Thursday, the police said they had begun issuing letters inviting people “reasonably suspected” of committing offences linked to the protests to interview.