Planning officials have been forced to ditch proposals for a controversial unit at a Birmingham hospital after residents staged a legal challenge.
Plans for a 63-bed extension at Moseley Hall Hospital for Alzheimer's sufferers were given the go- ahead last December despite concerns from local campaigners about the size of the project.
However, Birmingham City Council has now been forced to admit it had "shortcomings" in its planning procedures as it agreed to quash the ruling.
The climbdown comes after residents applied for a judicial review of the decision to back the proposals for a 5,000 square metre extension.
Concerns were raised at last year's planning meeting that the council was not complying with Environmental Impact Regulations when it was assessing facilities at the Grade II-listed hospital, which is in a conservation area.
John Dowell, chairman of Amesbury Road Residents' Association, said that planning committee councillors should have conducted a site visit.
He said: "Planners should have screened the proposals to decide whether a full Environmental Impact Assessment was necessary. Residents have never opposed the principle of new mental health services being provided on the site for elderly patients. However, they do feel that the existing parkland should not be encroached upon any further."
The plans involved the demolition of 1,700 square metres of the hospital and its replacement with a 6,300 sq m complex, increasing the total size of the medical centre to more than 20,000 sq m.
Mr Dowell said he hoped new plans could be drawn up which would see the new hospital only cover the ground occupied by the two wards that are to be demolished.
He also said a revised design should "not only meet the needs of patients" but also enhance the character of Moseley Conservation Area.
A spokeswoman for the city council said: "Regrettably there were shortcomings in the handling of this application and our procedures have now been rectified.
"We will therefore be working actively with the hospital authorities to ensure that their scheme progresses through the submission of a further application."
The plans were drawn up by Birmingham and Solihull Mental Health NHS Trust and Consort, the PFI partners involved with Birmingham's new super hospital.
Officials at the trust believe the creation of new Alzheimer's facilities at Moseley Hall Hospital are crucial to the building of the new super hospital at Selly Oak.
The project cannot be completed until patients at the Queen Elizabeth Hospital are transferred to new mental health wards.