diff --git a/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_config.py b/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_config.py
index 5e0674464f04..efb99a2509b7 100644
--- a/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_config.py
+++ b/sdk/agentserver/azure-ai-agentserver-core/azure/ai/agentserver/core/_config.py
@@ -23,7 +23,6 @@
 
 _ENV_FOUNDRY_AGENT_NAME = "FOUNDRY_AGENT_NAME"
 _ENV_FOUNDRY_AGENT_VERSION = "FOUNDRY_AGENT_VERSION"
-_ENV_FOUNDRY_HOSTING_ENVIRONMENT = "FOUNDRY_HOSTING_ENVIRONMENT"
 _ENV_FOUNDRY_PROJECT_ENDPOINT = "FOUNDRY_PROJECT_ENDPOINT"
 _ENV_FOUNDRY_PROJECT_ARM_ID = "FOUNDRY_PROJECT_ARM_ID"
 _ENV_FOUNDRY_AGENT_SESSION_ID = "FOUNDRY_AGENT_SESSION_ID"
@@ -88,18 +87,6 @@ def __init__(
         self.otlp_endpoint = otlp_endpoint
         self.sse_keepalive_interval = sse_keepalive_interval
 
-    @property
-    def is_hosted(self) -> bool:
-        """Whether the agent is running in a Foundry-hosted container environment.
-
-        Returns ``True`` when the platform-injected ``FOUNDRY_HOSTING_ENVIRONMENT``
-        environment variable exists and is non-empty. This variable is set
-        exclusively by the Foundry platform at container startup.
-
-        :rtype: bool
-        """
-        return bool(os.environ.get(_ENV_FOUNDRY_HOSTING_ENVIRONMENT))
-
     @classmethod
     def from_env(cls) -> Self:
         """Create an ``AgentConfig`` by reading all platform environment variables.
diff --git a/sdk/agentserver/azure-ai-agentserver-responses/azure/ai/agentserver/responses/hosting/_routing.py b/sdk/agentserver/azure-ai-agentserver-responses/azure/ai/agentserver/responses/hosting/_routing.py
index 6fcab01e4545..36a030038fe0 100644
--- a/sdk/agentserver/azure-ai-agentserver-responses/azure/ai/agentserver/responses/hosting/_routing.py
+++ b/sdk/agentserver/azure-ai-agentserver-responses/azure/ai/agentserver/responses/hosting/_routing.py
@@ -109,7 +109,7 @@ def __init__(
         }
 
         if provider is None:
-            if config.is_hosted:
+            if config.project_endpoint:
                 from ..store._foundry_provider import FoundryStorageProvider
                 from ..store._foundry_settings import FoundryStorageSettings