Proposals to open a 1,000-place sixth form college in Halifax town centre were turned down by the government.
It was hoped that a new college would be built under the controversial Free Schools programme with a focus on academic subjects to be opened by September 2016.
The application for the college was put forward by Trinity Academy Halifax who were concerned that too many students were being travelling our of Calderdale to study A-Level subjects.
Michael Gosling, principal at Trinity Academy Halifax, said: “The news that the bid for Calderdale 6th has not proceeded to the final approval stage is a blow for the young people of Halifax.
“The vision for this post-16 academic provider was to transform educational outcomes and stop thousands of students having to travel out of the area to secure the experience that they deserve.
“However, the government has made it clear that they have prioritised bids in areas that would have a shortage of places unless new provision is opened.”
Conservative Parliamentary candidate for Halifax Philip Allott said he will continue to press the issue with Education Secretary Nicky Morgan.