Multi-million pound plans to co-locate two of Shropshire’s biggest colleges on one site have been scrapped after one of the partners pulled out of the project.

Shrewsbury Sixth Form College has withdrawn from proposals to move to London Road to share a site with Shrewsbury College of Arts and Technology.

It comes after the development was thrown out by councillors earlier this month after four years.

Principal Martin Ward said: “The college has taken the difficult decision to withdraw from the co-location project and are revisiting other options for development.

“The decision is subject to formal ratification at the next project board meeting with Shrewsbury College of Arts and Technology.”Mr Ward said the recent planning decision combined with changes in the economy had increased the potential risks to the project.

Chairman of governors Robert Bland said: “I still wish to see extensive collaboration between the two colleges and local schools for the benefit of learners.

“The curriculum case remains very strong and we must look at ways of ensuring that students can access a mix of academic and vocational courses.”

Greg Molan, principal of Shrewsbury College of Arts and Technology, said: “We have been informed of the decision of the governing body at Shrewsbury Sixth Form College to withdraw from the co-location project.

“Our governing body will be meeting next week to consider the situation and determine its next steps.

“We understand that this has been a difficult decision for the Sixth Form College as, like us, they feel that the education case was very strong.”

Members of the SOS group, formed to fight co-location, said they were “delighted”.