Published Wednesday, 05 March 2014
Ballycastle business representatives have welcomed the decision. (© Getty)
An application by the retailer to build a 2,000 square metre store and residential development in the Leyland Heights and Ramoan Road area of the town, was initially refused by the Planning Service.
On Tuesday, the Planning Appeals Commission upheld that decision to refuse the application.
The decision was based on the economic impact the business would have on the viability of the town centre should it be given the green light.
The long-running saga has already caused disruption with traders complaining of a "Tesco cloud" hanging over the town which has discouraged retail investment.
The Northern Ireland Independent Retail Trade Association (NIIRTA) and Ballycastle Chamber of Commerce welcomed the decision.
Both organisations led an eight-year campaign opposing the plan.
In a joint statement Glyn Roberts, NIIRTA chief executive and Paul Cochrane, chairman of Ballycastle Chamber of Commerce said: "This was never about stopping Tesco coming to Ballycastle, but all about the out-of-town location of their proposed supermarket on Leyland Road.
"We have always maintained that these types of stores need to be in the town centre, rather than in unsustainable out-of-town locations which draw away footfall, trade and ultimately jobs.
"Ballycastle town centre should be the top priority for future retail development as it still has a problem with shop vacancies.
"It is vital that independent and multiple retailers work together to achieve this."
© UTV News