Plans for a nightclub within Glasgow's Botanic Gardens are "dead in the water", The Herald understands.
Leisure chain G1 Group has signalled its intention to walk away from the scheme.
The move follows a meeting this week with Glasgow City Council leader Steven Purcell and comes on the back of a nine-month campaign by local activists and cross-party political pressure.
It also follows increasingly hostile noises from the council's ruling Labour group and local MSPs, with several figures openly breaking ranks and Mr Purcell understood to have gone cold on the plans.
Doubts remain, however, over whether G1 will proceed with a plan to open a bar on the site and it is still in discussion with the authority over that part of the scheme.
But it has publicly stated that the project was only viable with the nightclub.
The withdrawal is due to be confirmed in writing within days, but was expected by many after G1's managing director, Stefan King, failed to respond to the council's final position regarding a lease, accusing it of changing its position.
The council demanded a shorter lease and insisted on a share of the profits after the scheme fell into the remit of development and regeneration head George Ryan.
The city council would neither confirm nor deny the move last night.
But a senior council source said: "Steven Purcell could have intervened in the negotiating process but chose not to once it became obvious this wasn't the best deal for the authority.
"It's difficult for something like this to proceed when the leader isn't convinced any more."
Last night, those opposed to the scheme were celebrating at least a partial victory.
Kelvin MSP Pauline McNeill, one of very few Labour members against it from the outset, said: "I'm now told this is dead in the water. Now we just wait for the verification at which stage the campaigners who have opposed this can congratulate themselves on a job well done."
Councillor Alex Dingwall, the local SNP member, said: "This is a victory for those in the local community and the cross-party voices who said we don't want this'."
Local LibDem councillor Mary Paris said: "I'm delighted that the leader of the council has listened to the voices of all those who criticised the nightclub proposal. The council should now look again at its visitor centre which it abandoned in 2006."
Leading opposition campaigner Jean Charsley, of Hillhead Community Coun-cil, said: "We are hugely relieved Stefan King has walked away from this ill-advised scheme.
"We are also very grateful to those members of the council who have listened to the massive outcry.
"We hope our beloved green space is now safe."
No-one from G1 was available for comment.
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