Atos Healthcare said it had been in discussions with officials for "several months" about ending its £500 million work capability assessment contract, which is due to run to August 2015.
It was reported yesterday that the French-run company had recorded 163 incidents a month last year of members of the public assaulting or abusing its staff, in person and online.
Examples on Facebook were said to include: "murdering scum... won't be smiling when we come to hang you b******s".
The company has come under fire over the assessments - which are used to gauge eligibility for Employment and Support Allowance and Incapacity Benefit - amid claims people are being wrongly recommended for work.
A spokesman for Atos said it would not "walk away" from the contract.