Boyer Planning Wokingham have withdrawn their bid to build 350 houses on land at Vale Farm, near Pitt Vale, following years of uncertainty for the area.
The proposed development was opposed by local MP Steve Brine and Cllr Jan Warwick, and they were delighted at the news.
Steve Brine said: "This is great news, I am really pleased and know that sentiment will be shared across the area by thousands of my constituents.
"As I have said many times before, Winchester has a fully signed-off Local Plan, and speculative developers should remain acutely aware of that."
"The Pitt Vale proposal did not have the support of local people. It was opposed at every stage by residents, Parish and Ward Councillors. Winchester City Council signed off their Local Plan for housing across the Winchester District this year. The plan allows for the development of new homes but alongside the necessary infrastructure needed to support residents in the future.
"Applications to develop areas such as Pitt Vale put unnecessary pressure on services such as transport, healthcare and education. The appeal was hanging over all of us and I know the local residents will be relieved with the decision this week."
Pictured; Steve Brine speaking out against plans for Pitt Vale