In a statement today, Hunt said that a "bottom up" approach is now the preferred strategy for creating a vibrant network of local TV services in the UK. This would involve supporting a range of "individually licenced stations" rather than taking a "top down" approach of a centralised local TV channel.
The Department for Culture, Media and Sport has also today published a summary of the 140 responses to its consultation on Hunt's 'Local Media Action Plan'.
"The government is committed to localism - putting power in the hands of citizens and neighbourhoods," said Hunt.
"Local TV will be a key part of that, giving people the local news and content they want and helping local democracy to flourish."
Various groups put forward proposals to take on the national network, which would have taken channel 106 on the Freeview electronic programme guide, as well as secure carriage on Sky and Virgin Media.
However, a number of industry stakeholders have criticised the proposal, with some local TV operators expressing concern about being marginalised by a dominant national commercial network.
Ministers are now looking at options for licencing individual local TV stations "within the right regulatory framework", including issues of technical capacity, feasibility, implementation, costs and the overall timetable.
Hunt stressed that no final decisions have yet been made, but added that he has been encouraged by the "incredibly strong support" for local TV expressed in the consultation.
"I have been particularly struck by the large number of local groups - particularly outside of London - who are keen to deliver this for their own communities," said Hunt.
"I have also met local community groups and media organisations up and down the country and have been impressed at their enthusiasm for delivering their own local TV."