The MSG Sphere proposal has caused further controversy as Newham's mayor warned government minister Michael Gove to halt his review of the plans.
Last month, London mayor Sadiq Khan rejected the proposal for the giant 21,500-capacity entertainment venue that was earmarked for Stratford.
The proposed development had caused widespread opposition, with concern over levels of light and noise for residents in the surrounding areas. Some had even threatened to move out of their homes if it was approved.
A spokesperson for the Department of Levelling Up, Housing and Communities (DLUHC) confirmed the plan was awaiting a ministerial decision but declined to comment further.
They said: "Given the role of DLUHC ministers in the planning system, it would not be appropriate to comment on the proposal as the application is due for a ministerial decision in the future."
The move for a ministerial decision has not been received well by Newham's mayor, Rokhsana Fiaz OBE, who had been "elated" by Mr Khan's decision to refuse planning permission.
She said: "My message to Michael Gove is just stop and don’t do it.
RELATED STORY: MSG Sphere, Stratford blocked by London mayor Sadiq Khan
"He should allow the London Legacy Development Corporation to refuse permission in line with the direction of the Mayor of London, Newham Council and the people of Newham.
"In our borough, we prioritise the quality of life, health and wellbeing of our residents.
"If the MSG Sphere is given the go-ahead by Michael Gove, the residents living in Stratford, Maryland and Stratford Olympic Park will suffer negative health impacts from light pollution and transport pressures.
"So Michael Gove hear the demands of us here in Newham and refuse MSG Sphere.”
A spokesperson for Sphere Entertainment was also critical of the decision, expressing frustration at politicians' intervention in the process despite describing Mr Gove's move as "commendable".
The spokesperson said: "The entire five-year planning process was hijacked by the (London) mayor. Londoners should be dismayed that they are not going to benefit from this groundbreaking project, and others looking to invest in London should certainly be wary.
"As we said previously, we will focus on the many forward-thinking cities.”
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