The US property tycoon's planning application for Trump International Golf Links Scotland was rejected by the council’s infrastructure services committee.
Committee chairman Martin Ford broke a 7-7 deadlock by casting his vote against the scheme, saying that a 'yes' vote would be ‘grotesque mistake’.
George Sorial, Trump's right-hand man, told the Press Association: ‘Obviously we are very disappointed. It is our position that the council has failed to adequately represent the voice and opinion of the people of Aberdeen and the shire who are ultimately the losers here.’
Sorial added that he was not sure if Trump would appeal the decision: ‘I think we have been very frank all along – we do have options elsewhere in the UK and we will sit down now and look at that’.
The proposed resort included two championship golf courses, a five-star hotel, a golf academy, nearly 1,000 holiday homes and 500 private houses.
The shock decision comes little over a week after the council’s Fortmartine area committee approved the application, by seven votes to four.
The scheme is being designed by US firm Wimberley Allison Tong and Goo, as well as local architect Roger Laird from SMC Jenkins and Marr.