Jack Waller, aged two, has been the public face of the hospice appeal
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Plans for a children's hospice in Doncaster have been rejected on environmental grounds.
Council officers wanted the scheme blocked because it would mean the loss of woodland and have a visual impact on the neighbouring St Catherine's hospital which is a listed building.
Councillors visited the Bluebell Wood site at Balby last week and voted to reject the plans on Tuesday.
Hospice trustees said that the failed planning application may mean having to build elsewhere in South Yorkshire.
Ancient woodland
Councillor Keith Coulton, who chaired the planning committee which refused the application, said it was not a case of deciding between children and trees.
He went on: "It is obvious we can have a hospice and preserve ancient woodland in Doncaster at the same time but in our view not on this particular site.
"We cannot ignore planning policies and advice which we would have had to do to approve this application."
Mr Coulton added that committee members felt there were other areas nearby which could accommodate the hospice with little impact.