Blackpool and Blackburn believe the development will cost them business
Preston's £700m regeneration plans may be derailed by objections from Blackburn and Blackpool councils.
The two councils claim the proposed Tithebarn development would kill business in the nearby towns.
Preston City Council, however, argued it would suffer without regeneration, which would not only help its city but the whole of the North West.
The development would include new shops, bus station, cinema, bars, 500 homes and 2,700 parking spaces.
Blackburn with Darwen Council leader Michael Lee said Tithebarn could take away up to 40% footfall from Blackburn businesses.
"If Preston would only stick with this one option we will go to the bitter end," said Mr Lee.
'Major threat'
Blackpool councillor Peter Callow backed Mr Lee's objections.
"Billions has been pumped into Liverpool and Manchester while the seaside resorts have suffered?" said Mr Callow.
"That's what we are fighting for - our survival and our regeneration - and we perceive Tithebarn as a major threat to us."
Council leader objects to plans
Councillor Ken Hudson, leader of Preston City Council, said: "What is good for Preston is good for Lancashire too" as the redevelopment could create up to 5,000 new jobs for the region.
"I'm disappointed that Blackpool and Blackburn cannot see the bigger picture, especially as Preston did when it came to Blackpool's bid for its casino re-development," said Mr Hudson.
"Similarly we are right behind Blackburn with its work with East Lancashire Districts to develop their economy and enhance links with Greater Manchester."
Mr Hudson added: "We don't want to stand in their way or tell them what's right or wrong for their areas."
The proposals for Tithebarn are being led by Preston Tithebarn Partnership which includes developers Grosvenor and Lend Lease, as well as Preston City Council.
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