Earlier, the YF had announced an indefinite strike in the district starting Wednesday.
The YCL cadres had vandalized a total 9 motorcycles and one van belonging to YF cadres in Dhankuta on November 2.
The YF had been staging symbolic protests since November 24 alleging that the authorities had failed to take action against the offenders and provide compensation for the damaged vehicles.
According to YF Coordinator in Dhankuta Prabin Pokharel, the protests were withdrawn after the cabinet meeting on Tuesday decided to provide compensation to the damaged vehicles.
The compensation will be provided as per the recommendation made by a probe committee headed by Dhankuta Assistant Chief District Officer Omkar Neupane.
Neupane-led Committee had recommended Rs 1.45 million compensation for the damaged motorcycles and the UML´s party office in Dhankuta. Following the cabinet´s decision, the Maoists will also get compensation as YF cadres had vandalized their party office and the party´s billboards.