The government said Ikea's plans broke planning rules

The company had appealed to the high court after Deputy Prime Minister John Prescott twice blocked the development but the appeal was rejected on Friday.

Ikea says it will continue its fight to open the store which would have created 600 new jobs and was key to the council's regeneration plans.

Mr Prescott said it broke rules on out-of-town shopping and employment.

David Hopkins, president of the Stockport chamber of commerce and industry, says the company's plans to fight the multiple rejections has the support of the whole town.

Elizabeth Berridge, the Conservative candidate for Stockport, condemned the ruling saying: "Ikea would have bought jobs, shoppers and businesses to Stockport. This really would have given Stockport the modern, thriving image it deserves."