Proposals to build a supermarket on Hailsham's historic cattle market site in East Sussex have been refused by Wealden Council's planning committee.
Hailsham cattle market has been in the town for 750 years
German retailer Aldi wants to build a store on the site.
Plans were recommended for approval, and the decision to refuse has now been referred to the regulatory committee.
Officers said the store would bring an economic boost. Objectors said the market was historically significant and important to local farming.
A Wealden District Council spokesman said the decision to refuse approval had been referred to the regulatory committee, which "oversees the work of the subcommittees on the council that carry out statutory duties".
Reports for the meeting supported the plans on the grounds of economic development, and said the supermarket would create jobs, expand retail in the town, and lead to a financial contribution towards relocating the market.
But objections came from Natural England, the National Farmers' Union (NFU) , Hailsham Town Council, three parish councils, and local residents.
Papers said the "majority of local residents want to see the cattle market retained".
The NFU said the royal charter covering the market was 752 years old, and its status should be protected in line with the 1871 Cattle Market Act.