RAF Scampton will no longer be used to house asylum seekers, according to the local authority.
West Lindsey District Council has received official confirmation from the Government that plans to establish an asylum accommodation site at the former RAF base have been dropped.
The council says it now plans to accelerate its £300m regeneration plan for the former Ministry of Defence site in Lincolnshire.
Leader of West Lindsey District Council, Cllr Trevor Young, said: ‘We have always been clear that the best use for this historic, key strategic asset was to unlock the potential to drive economic growth and prosperity in our place, for Lincolnshire and beyond.
‘Today we can finally put to bed an incredibly difficult period for our community and focus time, energy and resource on this once in a generation opportunity to honour the heritage of this site through regeneration and the delivery of investment in jobs and skills.’
