Nurton Developments had been asking Shropshire Council to back its proposals for land at Upton Lane, in Shifnal.
The council has published its recommendations for the local plan and its cabinet will decide whether to approve them or not on Monday.
The recommendation does not mention the site suggested by Nurton Developments, but does include other green belt land surrounding Shifnal.
Ian Willicombe, development partner at Nurton, said: “It is disappointing the council seems to have ignored all the time, expense and effort the company has invested at the invitation of the council in promoting a site that could address a lot of the issues affecting the town and fill many of the holes that exist in the council’s current draft local plan.
“When it comes to the proposals for Shifnal, it is a weak and ill-thought out plan that begs criticism instead of trying to find solutions.
“The site offers a viable, credible, sustainable and immediately deliverable solution to the town’s future needs.
"Furthermore, if the development was brought forward in the plan timescale the site could deliver substantial highways improvements for the town improving road links to Jct 3 of M54, and the preferred Shifnal employment allocations alleviating many of the existing town centre issues that are only likely to get worse if the suggested allocated and protected sites are developed.
“Hence the cabinet committee agenda makes disappointing reading, especially as it states that the process must move forward both robustly and swiftly but fails to address many of the issues in relation to the stated need for 1,500 houses in Shifnal over the course of this plan.”
The council’s proposals for Shifnal have already met with huge resistance from local people, with campaign group Shifnal Matters calling them unnecessary and suggesting they should be abandoned.
Mr Willicombe added: “This is an opportunity for Shifnal and must not be discarded without serious and robust consideration just for the sake of ensuring the Local Plan is not delayed.”