Last year's Stirling Prize-winner was planning to build an 11-storey metallic office block that would provide nearly 20,000m2 of office space to the City.
However, the City of London's planning committee voted 13 to 11 against the scheme, citing the building as being 'inappropriate' for the site due to its impact on the Monument and the Grade II*-listed Fishmongers' Hall.
The scheme is being backed by developer Sellar Property Group, the company behind Renzo Piano’s Shard of Glass at London Bridge and Herzog & de Meuron’s Portsmouth football stadium.
A spokesman for Sellar said: 'We will continue to work with David Chipperfield to produce a revised scheme. This is an important riverside site. It was a close decision at the planning committee with a significant number of members showing support for the scheme.'
The AJ understands that Chipperfield has already drawn up a smaller scheme for the site.