A plan to build 34 homes on the site of the former Monroes nightclub in Great Harwood has been thrown out by councillors.
An outline planning application for the Wood Street site was submitted to build 28 three-bedroom and six four-bedroom houses by site owner Ian Jackson.
The club, which was gutted by arsonists in 2005, stands near the Showground former home of Great Harwood FC.
Mr Jackson has been trying to develop the site for some years since the club burned down. In November 2008 he was denied permission to build 37 three and four bedroom houses and 12 apartments at the blighted site.
At the time, he pledged to plough £300,000 into changing rooms for Great Harwood Rovers FC’s 18 youth teams at the nearby Lyndon House playing fields.
The plans were rejected amid concerns of building the houses near the site of a Great Harwood abattoir.
Included in the new plan was the fact that half the site would not include houses, to act as a buffer between the site and the abattoir.
Despite being recommended for approval, councillors voted 10 to two to turn it down.
The main reason given was that if the site was used for housing, it would lead to the loss of the area as a sports facility.
Great Harwood councillor Ian Robinson said: "We had quite a long debate about it, but in the end it was rejected.
"We only have two stadiums like this in Hyndburn and really we don’t want to lose it. Once it’s lost, it’s lost.
"We were concerned the football field would be lost, even though the site is currently something of a mess and something needs to be done with it."
Great Harwood FC’s heyday was in the1960s and 1970s when the club played in the Northern Premier League.