The plans for a retail scheme, including the outlet, were submitted by the owners of Sheffield's Meadowhall shopping centre.
British Land applied to build a Next home store and garden centre, BMW and Mini car dealership and Costa Coffee drive-through café, on an overspill car park off Meadowhall Way in the South Yorkshire city.
Next has had a garden centre in Shoreham, West Sussex for over a year and has plans for up to 20 home and garden centres including in Warrington, Ipswich and Cardiff. Warrington's opening has been delayed by a fire until early 2013. Next said Shoreham is "doing well".
But the plans sparked objections from Scottish Widows Investment Partnership, which owns The Moor in Sheffield city centre and is investing tens of millions of pounds on the run-down shopping area.
Barnsley Council also objected on the basis the catchment area for the proposal has not been properly defined, and says planners should also consider the impact on the Barnsley Markets scheme.
In a report to councillors on Sheffield Council’s city centre, south and east planning board, officers recommended the scheme was rejected.