Odyssey Marine Exploration had wanted to salve the wreck of the 18th century's most impressive warship, which carried gold bullion and coins.
Odyssey has lifted an arrest order which it had placed on the wreck in a Tampa, Florida court, in a bid to claim salvage rights.
"This was inevitable once all parties agreed it is Victory, as she is a Sovereign-immune vessel," said Diver Magazine's maritime legal consultant, Mike Williams.
"The UK Government has received a report on the site from English Heritage and is now entering into discussions with interested parties [on the future management of the wreck site]," said Williams.
The site was examined with the assistance of Wessex Archaeology, working for English Heritage; the Department of Culture, Media & Sport; and the Royal Navy's survey vessel HMS Roebuck. Odyssey has independently confirmed that the wreck is, in its view, Victory.
The Government has taken possession of two brass cannon raised from the Victory site, for which Odyssey has been paid a $160,000 (£100,000) salvage award.
Contributors to discussions on the wreck's management will include the DCMS, Ministry of Defence and Joint Nautical Archaeology Policy Committee (JNAPC).
Replying to a Parliamentary question by Andrew Smith MP, Bill Rammell MP, Minister of State for the Armed Forces, said that the MoD was not planning to form any salvage agreement with Odyssey - as it had done in 2002 over another bullion-rich British warship wreck, HMS Sussex, which lies off Gibraltar.
If the Government were to enter into agreement with any party to salve the wreck, it would be going against guidelines of the Annex of the UNESCO Convention on the Protection of Underwater Heritage.
Britain has endorsed the Annex, which bans salvage for profit, even salvage per se, unless a site is under threat. English Heritage has adopted the Annex guidelines for its approach to wrecks management, under the Protection of Wrecks Act 1973.
The "look but don't touch” ethos, sympathetic to both heritage and war grave issues, has driven years of work by the Receiver of Wreck, heritage agencies, JNAPC, diving organisations and others in persuading divers not to remove material from wrecks.
Related links
Victory wreck damaged, says salvor
Rocks ahead for Victory salvage plan
HMS Victory find claim
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