Last month Southwark Council's planning committee rejected plans by Australian developer Lendlease to build an 18-storey office block at the corner of Walworth Road and Elephant Road.
The scheme – designed by ACME architects – also had the potential to include new premises for local GP surgeries.
Members of the council's planning committee weren't impressed by the design, with vice-chair Cllr Kath Whittam memorably declaring that an image of the scheme "looks like Ayers Rock has landed on Elephant & Castle".
This week City Hall announced that Sadiq Khan's deputy mayor for planning Jules Pipe had formally decided not to intervene in the case and would allow Southwark's decision to stand.
It remains open to Lendlease to lodge an appeal against the council's decision.