Campaigners wanted the 1960s bus station to be given listed status
A 1960s bus station may be demolished by a council after an English Heritage bid for it to be given listed status was rejected.
Preston City Council called the town's bus station "an eyesore", but English Heritage said it was "one of the most impressive civic buildings of its day".
The government rejected a request for the building to be given listed status.
It was decided the site did not reach the historic or architectural interest required.
A spokesman for the conservation charity said the decision by the Department for Culture, Media and Sport was disappointing.
"Inspired by Le Corbusier, with its dramatic curved sculptural effects, it [the bus station] is seen as a successful and bold example of a 1960s 'megastructure' that combines several functions," he said.
Preston City Council said the decision removed a potential obstacle to plans for a £700m regeneration of the city.
The proposed Tithebarn regeneration scheme involves demolishing the bus station and rebuilding in the city centre.
It will also see the creation of a John Lewis store, a new bus station and a revamped market.
Council leader Ken Hudson said he was delighted that common sense had prevailed.
"The building is an eyesore and is simply not worthy of being listed.
"It is too big, expensive to maintain and does not meet the needs of modern day bus passengers," he said.
"At least now we can focus on securing planning permission for the Tithebarn development and proposals for a brand new bus station that is fitting for the city of Preston."