Southend councillors have refused to back plans for a multi-million pound David Lloyd leisure centre in Eastwood.
The town's Tory cabinet believes the site near Cockethurst Farm in Snakes Lane, would be "unsuitable" for the complex.
Talks are now to be launched with the company, which has a centre on the Festival Leisure Park in Basildon, to look at alternative sites in the borough.
The complex would house a gymnasium, indoor and outdoor swimming pools, a bar/restaurant, possible tennis facilities and a variety of other leisure activities.
It is not clear why the plan for Snakes Lane was rejected or which other sites in the borough would be suitable.
However, the company is said to be looking for a central site in the town.
David Garston, Southend's executive councillor for regeneration, said: "We would like to see the David Lloyd leisure centre coming to Southend and we will be talking to them about an alternative site.
"The site they suggested would not get planning permission, but there are other sites that would be suitable and we will work with them to find one.
"I think the leisure centre would certainly add to the value of the town and I give my support to the scheme."
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