Council bosses are no longer considering land in Durkar as a potential location for a new travellers’ site.
They have decided the site off Durkar Low Lane is not appropriate to provide housing for travellers after listening to protesters.
People from Durkar, Crigglestone, Kettlethorpe and Sandal held a demonstration on the site last month.
They claimed it would have a negative effect on house prices, nearby businesses, traffic and crime, and raised concerns there were not enough school places or recreational areas for children.
Denise Jeffery, the council’s cabinet member for regeneration and economic growth, visited the Durkar site over Christmas.
Coun Jeffery said: “No decision had been made about the Durkar site but after seeing the area for myself, I fully agree with the concerns raised by the local community.
“This is not the appropriate place for a traveller site and we are no longer considering Durkar as a potential location.”
Wakefield Council is legally required to provide another travellers’ site for the district, and must now decide on an alternative location.
Former Wakefield mayor Norman Hazell, who opposed the Durkar plan, said the site was on a dangerous road bend.
He said: “I am delighted and relieved. This seems a sensible decision.
“This has nothing to do with travellers. The site is just so dangerous.
“It would also mean the loss of a local amenity because it is a lovely place for people to walk.”