Plans for the second phase of the Connecting Derby road project have been withdrawn.
The city's ruling Liberal Democrat/Conservative coalition says it is reviewing the project and says there will be more consultation before further work is agreed.
The cabinet member for planning Transport and the Environment, Lucy Care, says phase two, through Friar Gate, may go ahead in some form in the future depending on traffic conditions.
The main aim of the Friar Gate overhaul was to move a part of the tortuous route of the existing Inner Ring Road.
To minimise the impact on the conservation area, while still gaining the benefits of simplifying the route, the plan was to follow the line of the existing roads, making Stafford Street and Ford Street two-way.
Number 5 Agard Street (the Clutch Centre), the old day nursery of Cavendish Street and numbers 19, 33 and 35 Ford Street would have been demolished to allow the work.
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