By Dan Wilchins

The bank is under heavy pressure from regulators and elected officials after receiving $45 billion of capital from the U.S. government last year, including a $20 billion emergency infusion in November.

On Monday, Citigroup said it was going through with plans to buy a $50 million jet, which a person familiar with the matter said was a Dassault Falcon 7X. The bank said the new plane would cut its costs and it was financing the purchase by selling older jets.

But on Tuesday, a spokesman said Citigroup has no intention of taking delivery of any new aircraft.

Citigroup had ordered the executive jet in 2005, and was scheduled to receive it later this year. The bank said on Monday that canceling the deal would force it to pay millions of dollars of penalties.

The jet quickly became a lightning rod of criticism. A White House spokesman said President Barack Obama does not believe "that's the best use of money" by companies receiving taxpayer assistance.

Sen. Carl Levin, a Michigan Democrat, pressed the Treasury Department to block the sale.

"To permit Citigroup to purchase a plush plane -- foreign-built no less -- while domestic auto companies are being required to sell off their jets is a ridiculous double standard," Levin said.

Detroit-based General Motors Corp and Chrysler LLC were barred by the Bush administration from operating corporate jets as part of their December bailout.

(Editing by Steve Orlofsky)