Peel last night withdrew the outline application for its £4.5bn Wirral Waters scheme after an eleventh hour objection by retail investor Warner Estates.
Wirral Waters would, if approved and built, cover 640 acres of disused dockland in Birkenhead, providing 15,000 homes and 8m sq ft of retail, leisure and offices.
Warner owns The Pyramids and The Grange shopping centres in Birkenhead town centre. The objection filed by Warner said the Peel project could suck trade from the existing town centre, placing it "under serious threat."
Wirral Council's planning committee was due to decide on the application at a special meeting last night.
Warner added in a statement today: "We believe that there is a significant opportunity to develop a high quality scheme at Wirral Waters. However, we feel the current planning application has not sufficiently taken into account its likely impact on Birkenhead town centre.
"We do not feel a case has been made for any new retail and think the current proposals will have a harmful impact on the vitality of Birkenhead Town Centre. We have submitted our objections and are pleased that they are now being considered by Wirral Council and await their decision."
Wirral's planners said the application will now be decided upon next week.
Warner is advised by the planning team at Jones Lang LaSalle.