Ministers intervened on Wednesday to stop Sadiq Khan torpedoing the huge MSG Sphere in east London.
Levelling-up Secretary Michael Gove stepped in as he considers whether to call in the application for the controversial development on the edge of the Olympic park.
The Mayor of London moved to block the scheme last week, stating concerns about the amount of light pollution that it would cause for Stratford residents, lack of “green” credentials, and the impact it would have on the area.
But Mr Gove’s department has now written to the London Legacy Development Corporation to instruct it not to deny planning permission at this stage.
The letter states: “The Secretary of State hereby prohibits Your Local Planning Authority from implementing the Mayor’s direction of November 20 to refuse permission.
“The direction is issued to enable him to consider whether he should direct under section 77 of the Town and Country Planning Act that the application should be referred to him for determination.”
The secretary of state has the power to overrule Mr Khan if he considers the plans appropriate.
But his letter stressed that that the temporary step to prohibit a denial of planning permission did not indicate any possible future outcome to the application.
Plans for giant eyeball-shaped dome in Stratford were approved by the London Legacy Development Corporation (LLDC) last year, despite fierce opposition from locals and Newhamcouncillors.
Before the Mayor rejected the proposal Mr Gove hinted he wanted to a chance to scrutinise the scheme.
In February this year, he issued an Article 31 holding directive, preventing the LLDC and City Hall from rejecting the plans before the Government has time to inspect them.
The company behind the concert venue announced last week that it had abandoned its plans after they were blocked by Mr Khan.
The Sphere Entertainment Company, a sister firm to Madison Square Garden Entertainment Corporation [MSG], told the Standard it would sell the brownfield site – and look to build in another country.
“It really is the end of the line for London,” Mr Dolan said. “Why doesn’t London want the best show on earth?”
The Madison Square Garden company began consulting on the 21,500-seater arena dome arena in the capital in 2018.
A $2 billion identical venue has already opened in Las Vegas in September with rock band U2 beginning a 36-show residency there.