The party, however, denied that the decision had been aimed at electorally helping Trinamool Congress.
A party source said the decision not to contest the by-election, slated for June 2, had been taken by the party's state election committee, a day after BJP national president Rajnath Singh telephoned state unit chief Rahul Sinha and discussed the matter.
The BJP had named former state president Asim Ghosh as the candidate for the contest.
Rather, the source said, the party seriously pondered over the national president's suggestion to gear up for the coming panchayat polls "in which the BJP will fare better this time."
To a question, the party said the decision not to contest the by-poll had nothing to do with helping Trinamool Congress electorally.
"We will be contesting Trinamool Congress in panchayat election. This decision should not be construed as any electoral help to Trinamool Congress," the source said.
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