Chelsea have been told to forget about building a new stadium on the current site of the Earls Court Exhibition Centre.
The west London plot, along with the unused Battersea Power Station, was highlighted amongst the potential places for the Blues to re-locate last year as they search for a new home away from Stamford Bridge.
However, Hammersmith and Fuham Council have confirmed that the land will be used for 7,853 new homes, meaning Chelsea owner Roman Abramovich will now have to take his search elsewhere.
"The Earls Court landowners, H&F Council and Capco, are committed to the regeneration of the Earls Court Opportunity Area in line with the masterplan. It is the firm intention of the two landowners to proceed with this landmark regeneration, creating 9,500 permanent new jobs and around 36,000 temporary construction jobs,” read a Council statement.
"Neither of the two landowners believes that the inclusion of a football stadium in the scheme would offer the regeneration benefits of the existing masterplan."
Council Leader Nicholas Botterill amplified the point, and was quick to have his say on where the future of Chelsea Football Club should lie.
"There really is no place for Chelsea within the Earls Court redevelopment,” he added.
“It remains the council's firm belief that the future of Chelsea is best served at their historic home."
The news is a second blow for the Blues, after a Malaysian consortium purchased the Battersea power station last year.
Chelsea are eager to move away from their current home, which holds just under 42,000 fans - a capacity well below Premier League rivals Manchester United, Manchester City and Arsenal.