diff --git a/lisa/runners/lisa_runner.py b/lisa/runners/lisa_runner.py
index 6bbe24e3ce..155911ee94 100644
--- a/lisa/runners/lisa_runner.py
+++ b/lisa/runners/lisa_runner.py
@@ -335,6 +335,7 @@ def _deploy_environment_task(
                     self._log.info(
                         f"[{environment.name}] Deployment failed, retrying... (Attempt {attempt + 1}/{max_retries})"
                     )
+                    environment.status = EnvironmentStatus.New
 
     def _initialize_environment_task(
         self, environment: Environment, test_results: List[TestResult]