Local residents, supported by Basildon District Council, have been fighting the development and see English Partnerships' decision not to submit a planning application as a victory. But the agency said it may apply again once Basildon's local development framework (LDF) is in place in a few years' time.
Dry Street Green Action Group chairman Colin Wind said: "We hope that the delay will enable the council to do something permanent to protect the site."
English Partnerships confirmed the withdrawal but said it is not abandoning the scheme. A spokeswoman said: "The planning application will go through the LDF, providing an opportunity for further debate. We are aware of local feeling but are committed to finding a way forward."
But council leader Malcolm Buckley warned: "Submitting the application through the LDF could mean the final decision lies with government inspectors rather than the council."