"Unfortunately, due to the global financial crisis, the developer elected to focus on its core business of funds management and no longer property development," CrWreford said.

"The City of Casey has consequently reviewed its position and resolved to formally terminate the agreement."

The 5.1-hectare project was to be built between the Fountain Gate shopping centre and Casey Recreation and Aquatic Centre. The major initiative was set to be one of the largest shopping precincts in Australia - integrating existing and new retail, civic, lifestyle and leisure opportunities and creating thousands of jobs.

Cr Wreford said the agreement with the preferred developer, Consolidated Properties Group Pty Ltd, expired on November 30.

The council plans to review its position in relation to the project at "an appropriate time in the future", taking into account the site's "enhanced development potential" after the council removed retail floor space limitations.

Council officers will prepare an updated report for the council by April. The exclusivity agreement gave Consolidated Properties 12 months to complete design specifications and secure tenants.

As reported in the Journal last year, Casey was understood to be contributing a maximum of $52million towards community and civic facilities including new council offices and a 1000-seat performing arts venue if the project went ahead.

The estimated $300 million cost included 28,400square metres of retail/mixed use space on the prime site.