The mixed-use, £500m Arcadia scheme in west London designed by Foster and Partners and HKR Architects has been rejected by the government.
Communities Secretary John Denham said the new development would take away the distinctiveness and identity of the town centre.
The scheme includes 500 residential units and a 25-storey tower and is being delivered by Glenkerrin.
The controversial project was backed by CABE, the GLA and the local council, but was opposed by many local residents.
Glenkerrin is expected to launch an appeal in high court before 18 January.