diff --git a/contracts/src/Gateway.sol b/contracts/src/Gateway.sol
index 3eb858e806..b9ba740b71 100644
--- a/contracts/src/Gateway.sol
+++ b/contracts/src/Gateway.sol
@@ -38,7 +38,6 @@ import {
     CreateChannelParams,
     UpdateChannelParams,
     SetOperatingModeParams,
-    TransferNativeFromAgentParams,
     SetTokenTransferFeesParams,
     SetPricingParametersParams,
     RegisterForeignTokenParams,
@@ -197,10 +196,8 @@ contract Gateway is IGateway, IInitializable, IUpgradable {
                 success = false;
             }
         } else if (message.command == Command.TransferNativeFromAgent) {
-            try Gateway(this).transferNativeFromAgent{gas: maxDispatchGas}(message.params) {}
-            catch {
-                success = false;
-            }
+            // Disable this bridge command because now native Ether can be locked in an agent.
+            success = true;
         } else if (message.command == Command.Upgrade) {
             try Gateway(this).upgrade{gas: maxDispatchGas}(message.params) {}
             catch {
@@ -382,16 +379,6 @@ contract Gateway is IGateway, IInitializable, IUpgradable {
         emit OperatingModeChanged(params.mode);
     }
 
-    // @dev Transfer funds from an agent to a recipient account
-    function transferNativeFromAgent(bytes calldata data) external onlySelf {
-        TransferNativeFromAgentParams memory params = abi.decode(data, (TransferNativeFromAgentParams));
-
-        address agent = _ensureAgent(params.agentID);
-
-        _transferNativeFromAgent(agent, payable(params.recipient), params.amount);
-        emit AgentFundsWithdrawn(params.agentID, params.recipient, params.amount);
-    }
-
     // @dev Set token fees of the gateway
     function setTokenTransferFees(bytes calldata data) external onlySelf {
         AssetsStorage.Layout storage $ = AssetsStorage.layout();
@@ -591,12 +578,6 @@ contract Gateway is IGateway, IInitializable, IUpgradable {
         return Call.verifyResult(success, returndata);
     }
 
-    /// @dev Transfer ether from an agent
-    function _transferNativeFromAgent(address agent, address payable recipient, uint256 amount) internal {
-        bytes memory call = abi.encodeCall(AgentExecutor.transferNative, (recipient, amount));
-        _invokeOnAgent(agent, call);
-    }
-
     /// @dev Define the dust threshold as the minimum cost to transfer ether between accounts
     function _dustThreshold() internal view returns (uint256) {
         return 21000 * tx.gasprice;
diff --git a/contracts/src/interfaces/IGateway.sol b/contracts/src/interfaces/IGateway.sol
index 77351c08ec..84d5c072d0 100644
--- a/contracts/src/interfaces/IGateway.sol
+++ b/contracts/src/interfaces/IGateway.sol
@@ -32,9 +32,6 @@ interface IGateway {
     // Emitted when pricing params updated
     event PricingParametersChanged();
 
-    // Emitted when funds are withdrawn from an agent
-    event AgentFundsWithdrawn(bytes32 indexed agentID, address indexed recipient, uint256 amount);
-
     // Emitted when foreign token from polkadot registed
     event ForeignTokenRegistered(bytes32 indexed tokenID, address token);
 
diff --git a/contracts/test/Gateway.t.sol b/contracts/test/Gateway.t.sol
index 103276bcda..4b1b1af8b7 100644
--- a/contracts/test/Gateway.t.sol
+++ b/contracts/test/Gateway.t.sol
@@ -181,6 +181,16 @@ contract GatewayTest is Test {
         return (Command.TransferNativeToken, abi.encode(params));
     }
 
+    function makeTransferNativeFromAgentCommand(bytes32 agentID, address recipient, uint128 amount)
+        public
+        pure
+        returns (Command, bytes memory)
+    {
+        TransferNativeFromAgentParams memory params =
+            TransferNativeFromAgentParams({agentID: agentID, recipient: recipient, amount: amount});
+        return (Command.TransferNativeFromAgent, abi.encode(params));
+    }
+
     function makeMockProof() public pure returns (Verification.Proof memory) {
         return Verification.Proof({
             header: Verification.ParachainHeader({
@@ -589,14 +599,6 @@ contract GatewayTest is Test {
         MockGateway(address(gateway)).transferNativeTokenPublic(encodedParams);
     }
 
-    function testAgentExecutionBadOrigin() public {
-        TransferNativeFromAgentParams memory params =
-            TransferNativeFromAgentParams({agentID: bytes32(0), recipient: address(this), amount: 1});
-
-        vm.expectRevert(Gateway.AgentDoesNotExist.selector);
-        MockGateway(address(gateway)).transferNativeFromAgentPublic(abi.encode(params));
-    }
-
     function testAgentExecutionBadPayload() public {
         AgentExecuteParams memory params = AgentExecuteParams({agentID: assetHubAgentID, payload: ""});
 
@@ -758,18 +760,30 @@ contract GatewayTest is Test {
         assertEq(uint256(mode), 1);
     }
 
-    function testWithdrawAgentFunds() public {
-        deal(assetHubAgent, 50 ether);
+    function testWithdrawAgentFundIsIgnored() public {
+        address recipient = makeAddr("test_recipeint");
+        uint128 amount = 1;
+
+        deal(assetHubAgent, amount);
 
-        address recipient = makeAddr("recipient");
+        (Command command, bytes memory params) = makeTransferNativeFromAgentCommand(assetHubAgentID, recipient, amount);
 
-        bytes memory params =
-            abi.encode(TransferNativeFromAgentParams({agentID: assetHubAgentID, recipient: recipient, amount: 3 ether}));
+        assertEq(address(assetHubAgent).balance, amount);
+        assertEq(recipient.balance, 0);
 
-        MockGateway(address(gateway)).transferNativeFromAgentPublic(params);
+        // Expect the gateway to emit `InboundMessageDispatched`
+        vm.expectEmit();
+        emit IGateway.InboundMessageDispatched(assetHubParaID.into(), 1, messageID, true);
 
-        assertEq(assetHubAgent.balance, 47 ether);
-        assertEq(recipient.balance, 3 ether);
+        hoax(relayer, 1 ether);
+        IGateway(address(gateway)).submitV1(
+            InboundMessage(assetHubParaID.into(), 1, command, params, maxDispatchGas, maxRefund, reward, messageID),
+            proof,
+            makeMockProof()
+        );
+
+        assertEq(address(assetHubAgent).balance, amount);
+        assertEq(recipient.balance, 0);
     }
 
     /**
@@ -961,9 +975,6 @@ contract GatewayTest is Test {
 
         vm.expectRevert(Gateway.Unauthorized.selector);
         Gateway(address(gateway)).upgrade("");
-
-        vm.expectRevert(Gateway.Unauthorized.selector);
-        Gateway(address(gateway)).transferNativeFromAgent("");
     }
 
     function testGetters() public {
diff --git a/contracts/test/mocks/MockGateway.sol b/contracts/test/mocks/MockGateway.sol
index 4356bb9876..91deec788e 100644
--- a/contracts/test/mocks/MockGateway.sol
+++ b/contracts/test/mocks/MockGateway.sol
@@ -47,10 +47,6 @@ contract MockGateway is Gateway {
         this.setOperatingMode(params);
     }
 
-    function transferNativeFromAgentPublic(bytes calldata params) external {
-        this.transferNativeFromAgent(params);
-    }
-
     function setCommitmentsAreVerified(bool value) external {
         commitmentsAreVerified = value;
     }