Councillors have unanimously rejected plans for a 42-storey tower, saying it would stick out like a sore thumb.
Developers Drivers Jonas had hoped to build a four-star luxury hotel, a conference centre, gym, restaurant, cafe and 146 flats on the Brighton station site.
The plans also included a second five-storey tower which would provide 25 affordable housing units, four shops and a public square.
The application to Brighton and Hove City Council varied significantly from a masterplan for the entire 24-acre site, known as New England Square, agreed by the council in 2002.
The council previously consented to the building of a hotel with a maximum of seven storeys on that segment of the site.
Councillors at yesterday's meeting heard from developers and saw three photo montages of how the building would tower over other city landmarks, particularly Grade I-listed St Bartholomew's church, in Ann Street, Brighton.
Councillor Simon Williams, speaking on behalf of the Green Party, told the committee the structure would be visible from 20 miles away and across 70 per cent of the city, including the South Downs.
Branding it simple, bland and boring, he said: "If we are ever to have tall buildings in this city let them be beautiful buildings."
Drivers Jonas, who have already bought the land, said the building would be an exciting and visionary project and an elegant and distinguished addition to the city.
But councillors were firmly against the proposal, many outraged the guidance and plans put in place three years ago had been flaunted.
Labour councillor Francis Tonks said: "This is not a landmark building, it is more like an eyesore. We have looked at this from all angles and it would stick out like a proverbial sore thumb."
Green party councillor Sue Paskins said: "I am really pleased this is being refused. There was very little similarity between this application and the planning brief.
"Going from seven floors to 42 is horrendous. I am looking forward to receiving the application that respects the planning brief that we went to the bother of working on with the residents."
Tory councillor Averil Older commented on the number of applications labelled as landmark buildings which come to the committee.
A tower proposed for the former Caffyns seafront site in Kingsway, Hove, and rejected by councillors, had also been labelled a gateway to the city by its developers Alan Phillips associates.
Coun Older said: "I am wondering how many more landmark and gateway buildings we can fit in our city. We seem to have them coming in and going out at every exit."
Foundations for the multi-million pound site near the station have just been finished and building work on approved developments is about to begin.
When complete the site will contain town houses, a supermarket, a language school, an employment and training centre, a £1 million community centre and create up to 1,000 jobs.
Plans for a budget hotel from developers Jury Doyle also depart from planning guidance.
The developers have applied to build a tower with seven storeys instead of the recommended four. There is no committee date set for this application.
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