A valve lifter assembly for deactivating a cylinder in an internal combustion engine. The valve lifter assembly is provided with a plunger movably disposed within a bore of a main body member to controllably isolate the cam lift from the rocker arm and valve of the engine. The plunger is normally locked in an extended position to transmit cam lift to reciprocatingly operate the valve. At least one locking pin is moveably disposed within the plunger to engage an inner annular groove of the main body member. Pressurized oil is provided to dislodge the locking pins from the annular groove and allow the plunger to move within the main body member, thereby isolating the cam lift from the rocker arm and valve. The deactivating lifter is preferably disposed within the recess conventionally provided for hydraulic valve lifters.