An energy company that had planned to build wind farms at the site of the Battle of Bullecourt has axed the project.
ENGIE has halted the project after backlash from Australia and lobbying from Minister for Veterans Affairs Dan Tehan.
The Battle of Bullecourt in 1917 saw the Australian Imperial Force lose thousands of men.
Minister Tehan said the decision is welcome news for Australians and those whose ancestors lost their lives at the French village.
"This is wonderful news for every Australian and especially those with a family connection to the Battle of Bullecourt," Minister Tehan said.
“Some 2,300 Australians who died at Bullecourt have no known grave and Australians were rightly concerned about the potential impact of a construction project at the site.
“The ENGIE Group has listened to the concerns of the Australian people and they have acted with empathy by cancelling this project."
The minister thanked both ENGIE and the French government, which made representations on behalf of Australia.
“I would like to thank the ENGIE Group, who listened to our concerns, for the respect they have shown for the sacrifice made by Australian soldiers on French soil 100 years ago and the French government, who made representations on behalf of Australia," the minister said.
"Seeing how passionate Australians were about protecting the final resting place of the Bullecourt soldiers was a powerful reminder that we will never forget the service and sacrifice of the men and women who fight for our freedom and values."