Planners rejected the “mega-mosque” in West Ham, east London, which would have been three times the size of St Paul’s Cathedral with a capacity for almost 10,000 worshippers.
Newham councillors tonight rejected the plans, from Muslim group Tablighi Jamaat, after planning officials recommending permission be refused.
As thousands waited outside the council offices for the result, officials ruled the proposal, first mooted in 2007, was too large, would generate too much traffic and was poor in its planning and design.
The Abbey Mills Mosque, also known as the Riverine Centre, would have become the biggest Islamic centre in Britain and one of the largest in western Europe had it been given the green light.
Located in the shadow of the 2012 Olympic Park, in Stratford, it was to include a prayer hall for almost 7,500 men and a separate facility for about 2,000 women.
In comparison, Britain’s largest cathedral, in Liverpool, can hold up to 3,000 worshippers.
“Councillors have considered this application at length and with great care before deciding to reject it,” a council spokesman said last night.
“There are … concerns about the size of the proposed buildings and impact on parking and traffic in the local area.”
In the lead up to tonight’s vote, there had been fierce local opposition and concern about an expansion of the former industrial land.
Opponents had claimed the mosque, about the same size as Battersea Power Station, will become Britain’s first Sharia-controlled zone where up to a third of the local population are said to be of Asian descent.
Tablighi Jamaat currently uses part of the 17-acre Abbey Mills site to house the London Markaz, also referred to as Masjid-e-Ilyas, as a temporary hub for up to 2,500 people.
The Islamic sect, which started in India in the late 1920s, has been accused in the past of radicalising young Muslims.
Its European headquarters are in Dewsbury, West Yorks, where the July 7 bombers Mohammed Sidique Khan and Shehzad Tanweer studied at its madrassa.
The leader of the July 21 gang, Muktar Ibrahim, attended a Tablighi mosque in east London and the “fifth bomber” in the July 21 plot, Manfo Asiedu, attended a Tablighi gathering in Dewsbury for three days.
The group also operated from mosques in Walthamstow, east London, and High Wycombe, Bucks, where several of the airline plotters worshipped.
Assad Sarwar, the bombmaker, and Waheed Zaman, a biochemistry student, both joined weekend camps run by Tablighi Jamaat.
The group itself has said it “refrains from political or controversial activities and stands for democracy and freedom” and that it “promotes social and religious integration”.
A spokesman for the group was unavailable for comment tonight.
But the architects responsible for the plans have said: “The ambition is to create an exceptional piece of architecture of national significance.”
Since Tablighi Jamaat moved into the Abbey Mills site in 1996, it has become embroiled in a series of disputes with Newham Council.