The architect had a two-hour meeting in London with officials last Friday and has been urged to reassess the project's affordable housing elements, the AJ has learnt.
While CABE is known to be relatively happy with the status of his 'iconic' towers on the Hove waterfront, the height and size of a residential element surrounding the central sports centre core is known to be problematic.
Gehry will now have to appease the commercial needs of developer Karis - which is likely to oppose any potential lowering in height - with the demands of the heritage authority and design watchdog.
Sources have speculated that Gehry is now likely to submit a fresh planning application for the project.
The scheme has attracted controversy since it was first unveiled. Both Richard Rogers and the Jubilee Library executive architect Nick Lomax have spoken out over the effect it will have on the historic south-coast town.
Some groups of local residents have also campaigned vociferously against the scheme's height over the last 12 months.