A controversial multi-million pound scheme which would double the population of Lytham is not dead in the water despite its late withdrawal last week.

Kensington Developments dramatically pulled a planning application for almost 3,000 new apartments and a range of other facilities at land off Dock Road just days before it was due to be discussed by Fylde Borough Council's development control committee.

But the company, which is behind a series of development on the Fylde, is expected to come back with a new proposal for the scheme it has dubbed 'Lytham Quays.'

The council's planning chiefs had found 14 grounds for recommending the refusal of the controversial scheme, including the loss of industrial land, the effect on the character of Lytham and an existing over supply of land earmarked for housing development in the area.

The company issued a brief statement which said: "Kensington Developments formally withdrew the planning application for Lytham Quays on November 17 2005. The company has no further comments at this time."

A Fylde Borough Council spokesman said: "It is possible that an alternative proposal may be submitted some time in the future. The recommendation from Fylde Borough Council's planning officers was that Planning Permission is refused for both Quay's applications. The reasons for withdrawal and future actions are a matter for Kensington Development limited."

Councillors had been due to discuss an outline application for the overall Lytham Quays site and a detailed planning application which would have covered 975 apartments, an ice rink, cinema complex and a shopping and leisure development.

The scheme had prompted hundreds of letters of objection from members of the public as well as opposition from English Nature, the RSPB, the CPRE and neighbouring Blackpool Borough Council.