LIDL's appeal to construct a new 10 million euro Athlone foodstore has been denied by An Bord Pleanála.
The discount food store's original application was refused by Westmeath County Council in June of last year.
LIDL Ireland GmbH subsequently appealed the refusal to the higher planning authority.
The development was planned for the site of the Colm Quinn Motorstore in the Athlone Business Park.
Plans would have seen the demolition of the existing structures and the construction of single-storey discount foodstore, 128 surface car parking spaces a new public plaza area fronting on to Dublin Road.
Following an appeals process, An Bord Pleanála upheld Westmeath County Council's decision to refuse permission.
The scale of the development was found to contravene the town's retail strategy and Athlone Town Development plan.
Issues over traffic levels in the area also led to the higher planning body ruling against the German retail giant.
