Derby City Council has told education ministers that the city has ample primary school places and see no need for a Sikh free school.
The 420-place Akaal Primary Free School was approved by the Department for Education last year and ministers have told the council to find land for it.
But the council said additional primary school places were not needed following an expansion programme it had overseen, and thought any available land should be retained for future expansions that might become needed.
The council said it was considering the DfE’s stance and reviewing the legal position.
Sarah Russell, cabinet member for education and skills, said: “I am pleased that the council has been strategically managing the need for school places, and as result of this forward planning, Derby has sufficient primary school places. Additional primary schools places are not currently needed”.