The decision comes after the Royal Commission into Institutional Responses to Child Sexual Abuse claimed that Bishop Phillip Newell - bishop of the diocese of Tasmania from 1982-2000 - had failed to encourage alleged victims of sexual abuse in the Church of England Boys' Society to report to police what was alleged to have happened to them.

The bishop has said he was certain he had suggested alleged victims report their claims but acknowledged that he should have reported them himself.

Last year, Anglican Bishop Richard Condie announced that the church was convening a diocesan tribunal to potentially implement disciplinary proceedings against Bishop Newell.

The tribunal hearing was scheduled to be held on September 24 last year. However, Bishop Newell successfully applied to the Supreme Court for a stay of the proceedings.

And now the court has advised the Anglican Diocese, via the diocese's lawyers, that it would be prohibiting the tribunal from going ahead altogether, due to medical advice regarding the 89-year-old Bishop Newell's health.

"I am disappointed that people who were abused won't find closure in this matter and acknowledge there will be many who will be saddened by this outcome," Bishop Condie said.

Beyond Abuse spokesman Steve Fisher said "today is a very sad day for victims of paedophile priests who happened to be abusing children while Bishop Newell was the [Anglican] bishop of Tasmania".

"[Survivors] are very sad and disappointed," Mr Fisher said. "And anger is the word that comes to mind."