The striking £70m Spiral extension planned for the Victoria and Albert (V&A) Museum in London has been axed.
The V&A's Spiral would have faced onto Exhibition Road
The museum's board of trustees voted to abandon the ambitious design after the Heritage Lottery Fund rejected its £15m application.
Designed by radical architect Daniel Libeskind to showcase modern design, The Spiral had provoked controversy because of its futuristic look.
V&A director Mark Jones said scrapping the project was "a sad loss".
The plans had faced funding problems and the architect was asked to reduce the project's cost as far back as 2001.
Although private money had been donated, the trustees said it could not go ahead without public funding.
"This is a sad loss for the V&A and, I believe, for London as a whole," said Mr Jones.
Daniel Libeskind also designed the World Trade Center's replacement
"We remain profoundly grateful to Daniel Libeskind for his vision, his unfailing commitment and his passion for the V&A.
"Daniel Libeskind is one of the world's most outstanding architects and The Spiral would have been one of the most exciting and exceptional buildings in London.
"It is with great regret that the V&A has decided not to go ahead with The Spiral."
The Spiral was part of the museum's Future Plan - a project to develop different parts of the institution including the garden, some galleries and the building's north and south courts.
Plans for The Spiral's Exhibition Road site will be rethought, Mr Jones said.