The well-known laser-induced Rabi oscillations of a two-level atom are shown to be suppressed under certain conditions when the atom is entering a laser-illuminated region. For temporal Rabi oscillations the effect has two regimes: classical-like, at intermediate atomic velocities, and quantum at low velocities, associated respectively with the formation of incoherent or coherent internal states of the atom in the laser region. In the low velocity regime the laser projects the atom onto a pure internal state that can be controlled by detuning. Spatial Rabi oscillations are only suppressed in this low velocity, quantum regime.