It was thought Antony Gormley's Time Horizon, consisting of 100 iron-cast models of the artist, would bring a nine per cent tourism boost to the area during its stay at the estate this summer.

But planning officers advised national park members to block the plans due to the potential harm to rare fungi on the Salisbury Lawns, so Chatsworth House Trust dropped its application.

The Duke of Devonshire said: "I am sorry this work will not be seen in Derbyshire in 2008 and would like to thank all those who have been involved in this unique and exciting project for the tremendous amount of work they have undertaken for this application."

It was due to be the only showing of the work in Britain and the Duke had been looking forward to having it at the estate.

Although only 1.2 per cent of the grass would have been excavated, planning officers said lawns, which have been untouched for 248 years, would be spoiled by the influx of construction workers and visitors.

National park ecologists said the lawns contained fungi of possible international importance, but Chatsworth House Trust disagreed.
Trust members said in a statement: "This view differs from our own independent and expert research."

All other areas of the trust's application were approved by planning officers.

The trust said: "On these ecological grounds alone, we have decided, with great regret, to withdraw the application."

Planning officers confirmed that parking and public transport could have coped with the influx of visitors.