Council bosses have said plans for a sports centre in Yeovil "are not at the end of the road" after it was decided not to apply for planning permission.
Councillors were being asked to consider the future of developing a £28m Sport Zone on a section of Yeovil Recreation Ground.
Tim Carroll, South Somerset Council leader, said there was support but that the site may not be the best location.
"I'm confident we can look at the location, then move the project on."
'Second look'
Cllr Carroll added: "The need for sports provision is still very much there and it is a facility that Yeovil rightly deserves.
"We will still need to address the deficiencies in sports provision in the area and, although I am disappointed that we were unable to take this particular proposal to the planning stage at this point, I am confident that we can take a second look at the location issues and move forward with a sports zone in the imminent future."
On Thursday hundreds of campaigners packed a planning meeting hoping to block the scheme.
Councillors rejected plans to spend £364,000 on an outline planning application to build the centre on the recreation ground's car park.
The "sports zone" would have included a 50m pool, leisure pool and indoor sports facilities.
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