The Stagecoach bus company has shut down its Liverpool Road depot in Chester which has been earmarked for a 323-bed student complex.
The Chronicle understands Stagecoach has moved its operations to the disused Waverton Railway Station site where a commercial garage operated previously.
Originally there were plans for the bus depot to be located on the Chester FC car park in a move that would have netted the cash-strapped football club a rumoured £40,000 annual rent.
But Stagecoach later withdrew its planning application.
No reason was given but Chester FC said at the time that it understood Stagecoach had identified an alternative site.
It was last November Cheshire West and Chester Council planning committee approved plans by Liverpool Road Chester Limited, a subsidiary of Watkin Jones, to build a 323-bed student housing scheme on the Stagecoach bus depot site.
This was despite concerns about its large size, design and fears raised by the local councillor.
The Chronicle has asked Stagecoach for a comment.