Communities secretary John Denham has rejected Peel Holdings' multi-million pound plans for the development of a new racecourse and nature reserve near Salford, Greater Manchester.

A public inquiry into the project was launched in April 2009 after Peel Holdings appealed to the government to intervene due to Wigan Council and Salford City Council's (SCC) failure to decide whether to back the Salford Forest Park plans. Proposals included a new international standard horse racing course, boasting a 6,000-seat grandstand, an eventing course and an equestrian centre at the centre of the 1,690-acre (684-hectare) site, as well as an 18-hole golf course.

An 80-bedroom hotel with a gym, a restaurant and a swimming pool, a forest park visitor centre and an eco-village, as well as 11 miles (18km) of cycle trails and 20 miles (32km) of footpaths were also earmarked for the site. SCC lead member for planning Derek Antrobus said: "While the council's planning panel always recognised that Peel's proposals offered some economic and social benefits to Salford, it also recognised that the location of the scheme, lying in the green belt, posed some particular difficulties.

"The inspector and secretary of state clearly shared these concerns and have found that harm outweighs any benefits in this case and have accordingly dismissed the appeal."