A modification proposal was lodged in December for the approved Acoya Apartments at 37 Llewelyn Street, which sought to remove a clause subjecting the development to a right-of-carriageway through to Caldwell Street.

More than 90 objections were lodged to save the carriageway, which residents say is a popular connection from Llewelyn Street shops to Merewether Bowling Club, a preschool, park and playground and the Alice Ferguson Community Centre.

But residents who lodged submissions against the application confirmed to the Herald that they received correspondence from Newcastle council saying "the applicant has requested to withdraw the application".

"Consequently, City of Newcastle will not be issuing a determination of this application," the correspondence said.

Council's online development application tracker also states that the application has been withdrawn, with the date of determination being March 15.

Resident Michael Barwell, who spoke out against the application, said the update was "good news", however there are still apprehensions in the community about the future of the easement.

The 2018 approval to construct a mixed-use development including 12 residential apartments included provision for the retention of the right of way, which was negotiated in the contract of sale by the former site owner, Merewether RSL Club.

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