Plans to build a massive Asda store and hundreds of new homes in the centre of Chippenham have been withdrawn suddenly by a developer.

Opinion over the controversial proposal to create a new supermarket on the Langley Park site has been divided over the past four years and, after pursuing the original planning application to the High Court, the developer now seems to have given up hope.

Wiltshire Council members were informed of the “commercial decision” at a meeting in Trowbridge on Tuesday, but know no more about the reason for the withdrawl of the plans.

Chris Caswill, town councillor for Monkton Park, said: “I appreciate that many local residents will be disappointed by the developers’ decision to withdraw the planning application which aimed to bring an Asda store to the Langley Park site. And the loss of the shopping opportunity and local jobs is not to be taken lightly.

“But on balance I believe this is the right outcome. The traffic and planning problems were just too serious, and my guess is the latest application would have been rejected anyway.”

The former North Wiltshire District Council rejected the original plans for the £25 million redevelopment of Langley Park in 2007, after which developer Ashtenne and Asda lost two appeals. In October last year the developer was refused leave to appeal to the High Court and a month later Lord Justice Pill dismissed a second appeal for the 52,000 sq ft ASDA store and 192 homes.

The developer then fell back on to a second application for 220 homes and a foodstore of 38,000 sq ft.

Coun Caswill said: “This has been a long saga, over many years. But in the end the system did allow local voices to be heard and represented alongside the financial might of the Wal Mart chain. Whatever we feel about the outcome, that is something to be celebrated.”

Fellow councillor Bill Douglas believes a supermarket would be better suited to the other end of Chippenham, near Abbeyfield School and Stanley Park. He said: “Being from Hardens Mead I know there is a lot of land there that would be ideal for Asda.

“The people there are crying out for a supermarket on that side of town.”

Hundreds of people who backed an online campaign in support of Asda moving in to the Langley Park site will have been left disappointed by the news.

In November 21-year-old Joseph Dagostino set up a Facebook group in favour of the food giant’s planning application, and within days more than 500 had joined.

ASDA was unavailable for comment yesterday.