London & Cambridge Properties' plans to develop a factory outlet centre at Burntwood, 15 miles north of Birmingham city centre, appear dead in the water.
Lichfield District Council has shelved plans to appeal to the High Court after the 37,000 sq m-plus scheme was turned down last year by Deputy Prime Minister John Prescott.
Following a public inquiry, the Office of the Deputy Prime Minister overruled the planning inspector's decision to back the Burntwood scheme.
Burntwood's demise is a boost for St Modwens' plans for the£50 million Shannons Mill factory outlet centre in Walsall, which was granted detailed permission by Walsall Borough Council in March.
A Walsall Borough Council spokesman said: 'This is good news for Walsall. Shannons Mill should now proceed.'
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