diff --git a/internal/api/model/api.go b/internal/api/model/api.go
index df886e822c..782c2c2903 100644
--- a/internal/api/model/api.go
+++ b/internal/api/model/api.go
@@ -229,13 +229,6 @@ func NewUnlockMinerStackPoolTransactionData(createStakePoolRequest CreateStakePo
 	}
 }
 
-func NewFreeAllocationTransactionData(freeAllocationRequest *FreeAllocationRequest) TransactionData {
-	return TransactionData{
-		Name:  "free_update_allocation",
-		Input: freeAllocationRequest,
-	}
-}
-
 func NewFreeStorageAssignerTransactionData(freeStorageAssignerRequest *FreeStorageAssignerRequest) TransactionData {
 	return TransactionData{
 		Name:  "add_free_storage_assigner",
diff --git a/internal/api/util/client/api_client.go b/internal/api/util/client/api_client.go
index 588ba93f59..6f7f961db4 100644
--- a/internal/api/util/client/api_client.go
+++ b/internal/api/util/client/api_client.go
@@ -1275,58 +1275,6 @@ func (c *APIClient) AddFreeStorageAssigner(
 	wallet.IncNonce()
 }
 
-func (c *APIClient) MakeAllocationFree(
-	t *test.SystemTest,
-	wallet *model.Wallet,
-	allocationID, marker string,
-	requiredTransactionStatus int) {
-	t.Log("Update allocation...")
-	freeAllocationTransactionPutResponse, resp, err := c.V1TransactionPut(
-		t,
-		model.InternalTransactionPutRequest{
-			Wallet:     wallet,
-			ToClientID: StorageSmartContractAddress,
-			TransactionData: model.NewFreeAllocationTransactionData(&model.FreeAllocationRequest{
-
-				AllocationID: allocationID,
-				Marker:       marker,
-			}),
-			Value:   tokenomics.IntToZCN(0.1),
-			TxnType: SCTxType,
-		},
-		HttpOkStatus)
-	require.Nil(t, err)
-	require.NotNil(t, resp)
-	require.NotNil(t, freeAllocationTransactionPutResponse)
-	txnHash := freeAllocationTransactionPutResponse.Request.Hash
-
-	var freeAllocationTransactionGetConfirmationResponse *model.TransactionGetConfirmationResponse
-
-	wait.PoolImmediately(t, time.Minute*2, func() bool {
-		freeAllocationTransactionGetConfirmationResponse, resp, err = c.V1TransactionGetConfirmation(
-			t,
-			model.TransactionGetConfirmationRequest{
-				Hash: txnHash,
-			},
-			HttpOkStatus)
-		if err != nil {
-			return false
-		}
-
-		if resp == nil {
-			return false
-		}
-
-		if freeAllocationTransactionGetConfirmationResponse == nil {
-			return false
-		}
-
-		return freeAllocationTransactionGetConfirmationResponse.Status == requiredTransactionStatus
-	})
-
-	wallet.IncNonce()
-}
-
 func (c *APIClient) UpdateAllocationBlobbers(t *test.SystemTest, wallet *model.Wallet, newBlobberID, oldBlobberID, allocationID string, requiredTransactionStatus int) {
 	t.Log("Update allocation...")
 
diff --git a/internal/cli/model/model.go b/internal/cli/model/model.go
index a5e61265fc..a692478f65 100644
--- a/internal/cli/model/model.go
+++ b/internal/cli/model/model.go
@@ -792,7 +792,6 @@ var StorageIntSettings = []string{
 	"cost.cancel_allocation",
 	"cost.add_free_storage_assigner",
 	"cost.free_allocation_request",
-	"cost.free_update_allocation",
 	"cost.blobber_health_check",
 	"cost.update_blobber_settings",
 	"cost.pay_blobber_block_rewards",