A build for 80 homes in Goosnargh is on hold despite Preston councillors backing the development.
It comes as the secretary of state for housing, communities and local government has issued a “holding direction” on the scheme for land South of Whittingham Lane.
Councillors at Preston City Council (PCC) resolved to approve the development at a planning meeting on Thursday.
But, because the secretary of state is considering whether to call it in for review, the plans have been stalled until further notice.
A spokesman for Preston City Council said: “Although the planning committee resolved to grant planning permission for the planning application, the Secretary of State has issued a holding direction, which restricts the council from issuing the planning permission until he has decided whether to call-in the application.
“No time limit has been specified in the direction, therefore it lasts indefinitely until the council hears otherwise.”
As plans went before city councillors, at least 77 members of the public had lodged objections.
Ben Wallace, MP for Wyre and Preston North, and Whittingham Parish Council also came out in opposition to plans from applicant Setantii Holdings.
Speaking after the planning meeting Michelle Woodburn, of the Goosnargh and Whittingham Against Overdevelopment protest group, said: “I didn’t go to the meeting.
"It doesn’t matter what we say we just get shot down.
"I felt it was going to be a waste of my time.
"We are still holding out for the secretary of state to pull the plug on the application but I don’t think anything’s going to happen until Brexit gets sorted.”
Officers at Preston City Council (PCC) had recommended the planning committee to give the scheme the go-ahead on Thursday.
The application, which was seeking approval for access only, would also include pan area of public open space in the 3.23hectare site.
Mr Wallace is listed as against the plans in a council report. According to the document he argues: “Goosnargh is an unsustainable location and cannot offer a wide range of services to residents.”