Plans to build two skyscrapers on the site of Atletico Madrid's Estadio Vicente Calderon and land next door have been rejected by the city's authorities.
The proposed development has always been part of plans, first announced by Atletico in 2009, to move from the centrally-located Calderon to a new home in the former La Peineta athletics stadium on the outskirts.
Atletico said recently that they remain on track to be playing at a redeveloped 69,000-seater Peineta for the start of the 2016-17 season -- although that hope appears to be reliant on approval of the construction of the 30-storey residential towers.
In August, it was reported that Mexican billionaire Carlos Slim was to invest €150-170 million to ensure the project went ahead, and work has been ongoing at the Peineta site in recent months.
The previous Madrid city government had been supportive of the stadium move, but it has run into further problems since city elections last summer were won by non-establishment candidate Manuela Carmona.
Madrid's sustainable urban development chief, Jose Manuel Calvo, told a news conference that he did not accept the idea of skyscrapers in that part of the city.
No construction is currently allowed on the former Mahou brewery site next to the Calderon after Spain's supreme court found that the plan submitted did not meet the parameters for building in that area.