Major plans for up to 3,000 homes and a business park off the M54 have been scrapped.
Proposals for the large scheme off junction three at Tong have been mooted as part of the local plan.
But they appear to have been consigned to the scrapheap after Black Country councils failed to put a case forward.
The site was going to be developed in partnership with the West Midlands Combined Authority.
But Shropshire Council leader Peter Nutting told a meeting of full council that the scheme is on the verge of being axed for good.
He said: “The junction three scheme is now very unlikely to happen. It has been a grey area for some time.
“We have been waiting for the Black Country authorities to come forward with their ideas for the site be it housing or business development, but they have not done so.
“It looks very unlikely that this site will be brought forward as part of the local plan now.”
The plans were raised by Shifnal councillor Ed Bird, who called on the scheme to be officially scrapped by the council, saying the area could not cope with the influx of new residents and businesses.
“I ask, given the financial situation, that the proposals for junction three are thrown out once and for all,” he said.”
He said schools, health services, the roads and railways were all under major pressure already and could not cope with extra.
Councillor Malcolm Pate, for Albrighton, added: “I was told the Black Country councils had until the end of December to come forward with a proposal for the site and as we stand they have not.
“It is a carbuncle of a scheme and there is fierce opposition to it locally.
“It is clear that there is no justification for the scheme and I urge this council to formally scrap it.”
There was no vote taken, but with just days remaining for a proposal to be put forward, the future of the scheme is all but over.
Earlier, Councillor Bird said: “Residents have been shocked by the planned developments around their historic village, affecting, as in Shifnal, large areas of green belt land.
“It should be noted, however, there are two parts to the proposal: one is to develop the existing RAF Cosford base, which I am in favour of, as it secures its future and that of the museum and training college.
“The second part of the proposal is for additional housing and employment land around Tong which I strongly oppose.”
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