Shropshire Council's full meeting had been set to vote on a report stating that Telford & Wrekin Council would hand over the 'final decision' for the Ironbridge Power Station development – if the Telford committee approves the proposal.
The application for the former power station site proposes up to 1,000 new homes and is being jointly considered by the planning departments of both councils.
But, at the start of the Shropshire Council meeting this morning, speaker, Councillor Vince Hunt said the report was being withdrawn.
He said: "Members will be aware of the significance of the former Ironbridge Power Station site and how it sits on the boundary with Telford.
"The intent of this report was to cover any planning-related eventualities that might arise before our next decision making at council in June.
"However because of the geography and complexity of this site we want to make sure that the report accurately reflects the position of both councils. We apologise to the members and Telford & Wrekin for any inconvenience.”
Asked to comment on why the report was withdrawn a spokesman for the authority then added that more talks need to take place between the two councils.
He said: “The report was withdrawn from the council meeting pending further discussions. It will go back before the council in future if necessary.”
The withdrawn report, from Shropshire Council’s director of place, Mark Barrow, had said: "In order to develop the site effectively the applicant will require planning permission for both applications.
“Each planning application will be submitted for consideration by planning committee at each Council in due course.
“If planning permission is granted a single comprehensive decision with a single list of planning conditions and section 106 legal agreement is preferred so as to coordinate the delivery of the development.
“Telford and Wrekin Council has confirmed that in the event that its planning committee recommends approval for the part of the site that falls within the Telford and Wrekin boundary approval will be sought for onward delegation of the final decision for the whole site to Shropshire Council as the ‘lead planning authority’.
“This would allow Shropshire Council to issue a single decision that includes that part of the site within Telford and Wrekin.”
Although the development is within the Shropshire Council boundary, the development is likely to have a significant impact on schools, roads, and other infrastructure in Telford & Wrekin.
The application will be considered at a special meeting of Shropshire Council’s southern planning committee on March 23, and the parallel application will go before Telford and Wrekin Council’s planning committee in May.