The City of York Council (CYC) has rejected plans to locate a new observation wheel in the centre of the city following the closure of a similar attraction at the National Railway Museum (NRM) in November.

World Tourist Attractions (WTA) put forward plans to establish the new Yorkshire Wheel attraction in North Street Gardens, and approached the council to see whether it would support the proposals.

However, councillors rejected the North Street Gardens site as a possible location for the wheel, which is expected to be 55m (180ft) – five metres shorter than its predecessor at the NRM, because of "the potential damage to the historic environment, the limited size of the site, and concerns about flooding and accessibility."

CYC has owned the 1,750sq m (18,837sq ft) site by the River Ouse since 1959, and currently spends £1,325 each year to maintain the gardens.

Had the council approved WTA's plans, consent would also have been required from the Joseph Rowntree Foundation and Nestle UK to relax covenants on the land to allow the erection of the new wheel.