The pedestrianisation of Oxford Street is "off the table for good" announced Westminster Council.
In a letter to residents the council said it has withdrawn support for the scheme as a result of two public consultations.
The letter by Council leader Nickie Aiken said: “We believe there is a very strong democratic mandate that the pedestrianisation scheme that was under consideration is not what local people want,
"As a result, Westminster City Council has taken the pedestrianisation of Oxford Street off the table for good."
London mayor Sadiq Khan who has been keen to push through the pedestrianisation of the busy shopping district said the decision was a "betrayal" and that it "poses a real threat" to the future of Oxford Streets shops.
Residents living around the busy central London location were worried that the closure of Oxford Street would have forced taxis, buses and other traffic into smaller, and already congested, side roads creating gridlock on their doorstep.
Sadiq Khan wanted to start work pedestrianising the famous stretch of shops starting with the western end of Oxford Street later this year. Several busy taxi ranks were due to be lost and relocated into side roads one which included the Selfridges rank.