After a triumphant bid by English Heritage (EH), the Beetham Organisation agreed to revise its proposals for the tower and reduce it from 180m to 170m in height (The tower is pictured in its 180m iteration).
It now looks unlikely, however, that EH will recommend Simpson's new tower be called in by Communities Secretary Hazel Blears.
In a statement, EH said: 'A tall building in this location would, in the opinion of EH, be premature, pending the adoption of a tall buildings policy and area-development framework for this part of inner London.
'The height reduction proposed would, however, significantly reduce the impact of the building on the protected historic view of Whitehall from St James's Park.'
It added: 'While EH cannot withdraw its objection, it has agreed that it would not ask the Secretary of State to call in an application for the revised proposal.'