Center Parcs has announced it will not go ahead with its plans for a new holiday village at Oldhouse Warren near Crawley.
It has concluded that the site in Worth Forest, south of Maidenbower, is not a suitable location after analysing the detail from the environmental and ecological surveys.
The Woodland Trust has welcomed the news and says the proposals would have been disastrous for wildlife and loss of ancient woodland.
Crawley MP, Henry Smith, said “the victory is welcome news” for the Sussex countryside.
Crawley Borough Council had previously raised its objections to Mid Sussex District Council about the Center Parcs planning application for the site.